Not included under the functions of RBI is

The correct answer is - Accepting deposit on interest

Key Points

• Accepting deposit on interest
  • The Reserve Bank of India (RBI) does not function as a commercial bank that accepts deposits from the public and pays interest on them.
  • RBI's role involves the regulation and supervision of the financial system, ensuring monetary stability, and managing the country's foreign exchange and reserves.
  • Accepting deposits and paying interest is the function of commercial banks, not the central bank.

Additional Information

• Issue of currency
  • RBI has the sole authority to issue currency notes in India, except for one-rupee notes and coins which are issued by the Ministry of Finance.
  • This function ensures a uniform currency system and helps in controlling the money supply in the economy.
• Banker of the Bank
  • RBI acts as the banker to all commercial banks in India. It maintains their accounts and provides them with financial services such as clearing and settlements.
  • This role helps in maintaining liquidity and stability in the banking system.
• Banker of the Government
  • RBI acts as the banker to the central and state governments. It manages their accounts, facilitates transactions, and advises on financial matters.
  • RBI also helps in managing the government's borrowing program and public debt.