Q169
Indian EconomyMoney, Banking & Financial Institutions
Which of the following is incorrect? The Reserve Bank of India
- a.influences the regulatory and supervisory standards of the non-banking financial companies.
- b.stabilises the short term rates of interest or the call rates.
- c.provides rediscounting and borrowing facilities to the co-operative banks.
- d.provides loan facilities to the corporate houses.
Answer: (D) provides loan facilities to the corporate houses.
The RBI is a bankers' bank and the Government's bank; it does not lend to corporate houses. It does regulate NBFCs, steer short-term and call money rates, and provide refinance and borrowing facilities to co-operative banks.