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Q.

Which of the following is the Central Bank of India?


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a

Central Bank of India

b

Reserve Bank of India

c

Bank of India

d

State Bank of India

answer is B.

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Detailed Solution

The Reserve Bank of India is the Central Bank of India. It is the name of the country's central bank. RBI supervises the functionality of banks and other sources of the formal sector. The Reserve Bank also decides the interest rate to keep a check on banks to whom they are lending, how much, and for what duration. It ensures that the banks not only give loans to rich traders and profit-making businesses but also to small cultivators, small-scale industries, small borrowers, etc. Periodically, banks also have to submit reports to the RBI to check the flow of credit.
 
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