Discussion
Which among the following is incorrect ?
Answer: D
The incorrect statement is RBI is lender to the large industrial corporations.
The Reserve Bank of India does not lend to companies. Industrial and commercial borrowers obtain credit from commercial banks, financial institutions and the capital market; the RBI regulates and supports that system rather than taking part in it as a lender to firms.
The other three are its core functions. It is the bank of issue, with the sole right to issue currency notes other than one-rupee notes and coins. It is banker to the Central and State Governments, managing their accounts and public debt. And it is the bankers' bank: it holds the cash reserves of commercial banks, provides them credit and acts as lender of last resort.
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