Question Bank - Banking & Financial Services

Here's the question bank on all the banking & financial services topics.

Who among the following manages the liquidity in Indian economy?

A.
Reserve Bank of India
B.
Union Finance Ministry
C.
Securities and Exchange Board of India
D.
Indian Bank Association

Solution:

The correct answer is the Reserve Bank of India. Reserve Bank of India manages liquidity in IndiaAdditional Information Reserve Bank of IndiaUnder the jurisdiction of the Ministry of Finance. Functions of RBI include:Issue of Bank NotesBanker to Government i. e. manages the banking needs of the governmentRepresents the Government of India as a member of the IMF and the World Bank. Custodian of Cash Reserves of Commercial BanksCustodian of Countrys Foreign Currency ReservesLender of Last Resort. Controller of Credit i. e. Managing money supply (Liquidity)General information about RBIHeadquarters- MumbaiGovernor- Shaktikanta Das (as of July 2022)Established on 1 April 1935 in Kolkata. Moved to Mumbai in 1937. Securities and Exchange Board Regulator of the securities and commodity market Under the jurisdiction of the Ministry of Finance. Established- 12 April 1992Chairperson- Madhabi Puri Buch (as of July 2022)Ministry of FinanceFinance Minister- Smt Nirmala Sitharaman (as of July 2022)Minister of State- Dr. Bhagwat Kishanrao Karad and Shri Pankaj Chaudhary (as of July 2022)Finance Secretary- Dr. T. V. Somanathan (as of July 2022)Indian Bank AssociationFormed- 26 September 1946It's the representative body of the Indian Banking Industry. Chairman- A K Goel (as of July 2022)

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