Which of the following is NOT a function of the Central Bank?
Show Hint
- Issue of currency
- Banker to the Government
- Accepting deposits from the general public
- Custodian of foreign exchange
The Correct Option is C
Solution and Explanation
The Central Bank (RBI in India) is the apex monetary institution and its functions are distinct from those of Commercial Banks.
Step 2: Detailed Explanation:
The Central Bank's functions include: Issue of currency notes, acting as a Banker to the Government, acting as a Banker's Bank, acting as a Custodian of foreign exchange reserves, and controlling credit in the economy.
Accepting deposits from the general public is a function of Commercial Banks, not the Central Bank. The Central Bank only accepts deposits from commercial banks and the government.
Step 3: Final Answer:
Accepting deposits from the general public is NOT a function of the Central Bank.
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