How does the Reserve Bank of India Act, 1934 describe the Bank Rate published under section 49?
Section 49 identifies the standard RBI purchase or rediscount rate for eligible bills and other commercial paper.
Choose your answer
How does the Reserve Bank of India Act, 1934 describe the Bank Rate published under section 49?
Answer and explanation
Correct answer A
Section 49 identifies the standard RBI purchase or rediscount rate for eligible bills and other commercial paper.
Option feedback
Option A
Section 49 concerns the rate at which the RBI is prepared to buy or rediscount eligible bills or other commercial paper.
Option B
A scheduled bank’s lending rate is distinct from the central bank’s statutory Bank Rate.
Option C
A return on a lending portfolio is a measure of profitability.
Option D
Overnight borrowing by the RBI is a different transaction from purchasing or rediscounting eligible commercial paper.
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Punjab Judicial Services