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What is the primary role of the Reserve Bank of.
Question
- A. managing individual bank accounts
- B. Providing loans directly to consumers
- C. overseeing the stock market
- D. Maintaining monetary stability and regulating banks
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correct Answer ( D )
The reserve Bank of India (RBI) acts as the central bank of India and plays a crucial role in regulating the Indian banking system . Its primary functions include maintaining monetary stability, managing the country’s foreign exchange reserves and acting as lender of last resort to commercial banks . The RBI also oversees the licensing and supervision of banks to ensure financial soundness and stability . This includes setting reserve requirements, capital adequacy ratios and implementing prudential regulations to prevent banking crises . Furthermore, RBI actively