Reserve Bank of India - Income Sources
Question
Which of the following are the sources of income for the Reserve Bank of India?
- 1.
Buying and selling Government bonds
- 2.
Buying and selling foreign currency
- 3.
Pension fund management
- 4.
Lending to private companies
- 5.
Printing and distributing currency notes
Options
I and II only
II, III and IV
I, III, IV and V
I, II and V
Explanation
Statements I and II are correct. Statements III, IV, and V are incorrect.
RBI earns interest from holding and trading Government bonds (Open Market Operations) and from foreign currency assets. It does not manage pension funds (PFRDA does) or lend directly to private companies. Printing currency is an expense, not a direct income source.
Answer: (a).
Question details
Year
2025
Paper
GS Paper 1
Question
Q2
Subject
Economy
Sub-topic
Banking & RBI
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
RBI Act 1934
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