Economics • Banking & FinanceEasy
Which institution acts as the central banking authority in India?
A. State Bank of India
B. Reserve Bank of India✓ Correct Answer
C. Ministry of Finance
D. National Bank for Agriculture and Rural Development
💡 Solution & Explanation
The Reserve Bank of India is the supreme monetary authority of the country, responsible for regulating the banking system, issuing currency, and formulating monetary policy under the Reserve Bank of India Act, 1934. State Bank of India operates as a commercial public sector bank rather than the central regulatory authority. The Ministry of Finance formulates fiscal policy and oversees overall economic governance. The Reserve Bank of India maintains its central office in Mumbai.
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