Consider the following statements regarding Reserve Bank of India:

Correct Option

All four statements accurately describe the functions of the Reserve Bank of India (RBI).

• Statement 1: The RBI acts as a banker to the Central Government, managing its receipts, payments, and public accounts.
• Statement 2: The RBI is responsible for formulating, implementing, and monitoring the monetary policy of India, with the primary objective of maintaining price stability while keeping in mind the objective of growth.
• Statement 3: The RBI acts as an agent of the Government of India in various capacities, including managing public debt and foreign exchange.
• Statement 4: The RBI handles the borrowing programme of the Government of India, facilitating the issuance of government securities and managing the internal public debt.

Incorrect Options

Option (a) is incorrect because it only includes statements 1 and 2, omitting the RBI's roles as an agent of the government (statement 3) and its function in handling the government's borrowing programme (statement 4).

Option (b) is incorrect as it excludes statement 1, which highlights the RBI's fundamental role as a banker to the Central Government.

Option (d) is incorrect because it omits statement 1, regarding the RBI's role as a banker to the government, and statement 2, concerning its responsibility for monetary policy formulation and administration.