The Reserve Bank of India (RBI) recently imposed a monetary penalty on three banks -₹1.50 lakhs on Dr. Ambedkar Nagarik Sahakari Bank Maryadit, ₹25,000 on Nagarik Sahakari Bank Maryadit, and ₹1 lakh on Ravi Commercial bank for violating the provisions of its regulations. The banking regulator has imposed a monetary penalty for contravention of non-compliance with the directions issued to Ravi commercial bank an exposure norms and statutory and other restrictions & KYC.

Which of the following is correct statement?

One rupee note and all coins are issued by the Ministry of Finance

Option 4 is correct: "One rupee note and all coins are issued by the Ministry of Finance.

Option 4: "One rupee note and all coins are issued by the Ministry of Finance.": This statement is correct. In India currency notes (except Rs 1 Note) are issued by the Reserve Bank of India (RBI), which is the monetary authority in India while the coins are issued by the Ministry of Finance (along with Re 1 note), Government of India.

Option 1: "RBI acts as banker to commercial banks & Central Bank." :This statement is only partially correct. Central banks, including the Reserve Bank of India (RBI), act as bankers to commercial banks and not to the the central bank as RBI itself is the Central Bank of India.

Option 2: Central Bank creates credit in the economy: This statement is incorrect. It is the commercial banks which create credit in the economy and not the central bank. However, Central banks, such as the Reserve Bank of India (RBI), play a crucial role in the economy by controlling the money supply and implementing monetary policy. One of the functions of a central bank is to influence the creation of credit in the economy through various tools and policies. This includes setting interest rates, regulating commercial banks, and implementing measures to control inflation and promote economic stability

Option 3: "All financial institutions are banking institutions.": This statement is not correct. Financial institutions include a wide range of entities, not all of which are banking institutions. For example, insurance companies, investment firms, and credit unions are financial institutions, but they may not be classified as traditional banking institutions