economics medium True/False

The RBI acts as the 'Banker to the Government' by maintaining the current accounts of the Central and State Governments and managing their public debt.

  1. True
  2. False

Answer: True

As the government's banker, the RBI receives and makes payments on behalf of the government, facilitates the transfer of funds, and crucially, manages the issuance of new government bonds and treasury bills to finance the fiscal deficit.

Topic Banking - Functions
Exam Relevance Banking, SSC, UPSC
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