Assertion (A) : The Reserve Bank of India is entrusted with the management of the public debt and issue…
Both Assertion (A) and Reasoning (R) are true statements under the Reserve Bank of India Act, 1934: the RBI manages public debt and issues loans and treasury bills for…
Choose your answer
Assertion (A) : The Reserve Bank of India is entrusted with the management of the public debt and issue of new loans and treasury bills on behalf of the central and state Governments. Reasoning (R) : The Governor and the Deputy Governors of Reserve Bank of India are appointed by the Central Government.
Answer and explanation
Correct answer B
Both Assertion (A) and Reasoning (R) are true statements under the Reserve Bank of India Act, 1934: the RBI manages public debt and issues loans and treasury bills for Central and State Governments (Sections 20 and 21), and its Governor and Deputy Governors are appointed by the Central Government. However, the appointment procedure is not the reason why the RBI acts as debt manager to the government.
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UGC NET Commerce