As a supervisor, which of the following functions are performed by the central bank of India?

1. It regulates and controls the commercial banks.
2. It goes for a periodic inspection and gives licensing or permission for branch expansion.
3. It makes sure that their is no panic situation in the economy.
4. It asks the commercial banks to keep CRR i.e. a certain percentage of deposits separate.

1 and 2

RBI performs various functions. One of the important function of RBI is the supervisory function i.e. Supervision and Regulation of Banking and Nobn Banking Financial Institutions. RBI functions to protect the Interest of depositors through an effective regulatory framework. RBI Keeps a keen eye over the conduct of banking operations and solvency of the banks along with maintaining the overall financial stability through various policy measures.

Supervisory function of RBI includes:

1. Supervise, regulate and control the commercial bank
2. Periodic inspection of banks
3. Controlling Non-Banking financial institutions

Other Functions of RBI are:

1. Monetary Policy Authority: One of the most important functions of RBI is the formulation and execution of monitory policy and securing monetary stability in India It functions the currency and credit system to its advantage.

2. Regulation of Foreign Exchange Market, Government Securities Market

3. RBI acts as a banker to the government. RBI is the responsible agency for receiving and paying money on behalf of the various government departments. RBI is also authorized to appoint other banks to act as its agent and undertake banking business on the behalf of the government.

RBI acts as an advisor to the government when called upon to do so on financial and banking-related matters.

RBI acts as a banker to banks. Banks open their current account with RBI to maintain SLR and CRR (Statement 4). RBI is a common banker for the different banks that enables the settlement of interbank transfers of funds. For special purposes or in need, RBI provides short-term loans and advances to banks.

RBI acts as lender of the last resort. It means RBI comes to rescue the banks that are solvent (facing temporary liquid problems) but have not gone bankrupt. RBI provides this facility to protect the interest of depositors and to prevent the possible failure of the bank. It makes sure that their is no panic situation in the economy (Statement 3).