On June 8, the Reserve Bank of India (RBI) released the results of its June policy meeting, with Governor generally expected to raise the repo rate once more in the fight against surging inflation. The policy repo rate was raised 50 basis points to 4.90 percent with immediate effect, as expected. As a result, the standing deposit facility (SDF) rate has been changed to 4.65 percent, while the marginal standing facility (MSF) rate has been adjusted to 5.15 percent, and the Bank Rate has been adjusted to 5.15 percent. RBI has increased the FY23 consumer price index (CPI) inflation forecast to 6.7 percent from 5.7 percent. Inflation is likely to remain above 6 percent in the first three-quarters of the current fiscal. Governor Shaktikanta Das said that the RBI’s steps would be “calibrated, focussed on bringing down inflation to target level". The global economy has been grappling with multi-decadal high inflation and sluggish growth, ongoing geopolitical tensions and sanctions, rising crude oil and other commodity prices, and lingering COVID-19-related supply chain bottlenecks, according to the RBI. The available data for April-May 2022 indicates a broadening of India's economic recovery, according to RBI Governor. Demand in cities is steadily improving, while demand in rural areas is gradually improving. Merchandise exports posted robust double-digit growth for the fifteenth month in a row during May while non-oil non-gold imports continued to expand at a healthy pace, pointing to the recovery of domestic demand. Also, the RBI has decided to allow UCBs to offer doorstep banking services to its customers on par with scheduled commercial banks in order to achieve regulatory uniformity across REs and to give the convenience of banking services to customers at their doorstep

Which of the following functions is NOT performed by the Central Bank in the country?

None of the above

The correct answer is Option 4: None of the above

All the given options are the functions of RBI.

The Central bank performs the following functions:

• Currency authority: Central bank is also called a bank that has the legal right to issue currency.
• Banker to the government: Performs all the functions as the banker to the government like carrying out all banking business of the government, granting loans and advances, managing public debt, and being an advisor to the government. It also acts as an agent to the government in collecting taxes.
• Banker's bank and supervisor: It acts as a custodian to the cash reserves, provides centralized clearing functions, lender of the last resort. It supervises other commercial banks and helps them in credit creation.