Q. Which among the following function of RBI gives most clear indication that it is Bankers’ Bank in India?
Answer: Liquidity Adjustment Facility
Notes: Issuance of currency makes RBI the sole agent of the government to issue currency notes, Ways and means advances are advances to the state and central government, Maintenance of currency chests comes under currency management, Collection of credit information is related to regulation of borrowers, Liquidity adjustment facility is the most appropriate option which gives an indication of RBI working as bankers` Bank.
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