On the night of 8th of November, 2016, PM Modi announced that the notes of Rs. 500 and Rs. 1000 will not be legal tender after 12 o' clock midnight. The issuance of new notes in denomination of Rs. 500 and Rs. 2000 was also announced. Slowly, new notes in denomination of Rs. 10, 20, 50 and 100 also came out even though the old notes of same denomination are still in circulation. This is not a new phenomenon in India. It has been done earlier also. Once in 1946 and again in 1978. This is done to combat tax evasion and black money in the economy. While it has been claimed by several experts that doing this is not going to reduce blackmoney as most of the blackmoney is being held in form of bullion and benami property and jwellery. How beneficial it has been in the long run is still debated and the research is still on. But what is sure is that, in short run, it had a lot of negative effects on the people and the economy.

Which of the following is NOT a function of RBI?

Banker to banks Foreign exchange management Supervision of banking financial institutions Accepting deposits from public

Accepting deposits from public

RBI lends money to government and the commercial banks that in turn can lend to the public and provide facility of deposits. RBI does not deal directly with general public.