Financial Awareness - Risk, Stability & Emerging Finance
Which of the following is a primary objective of the Reserve Bank of India as a regulator of banks?
Which of the following is a primary objective of the Reserve Bank of India as a regulator of banks?
easy Q1 of 15
Step-by-Step Solution
Step 1: Understand RBI’s regulatory objectives
The RBI’s role as a regulator focuses on maintaining financial stability and soundness of banks.Step 2: Analyze options
Setting fiscal policy is a government function, salaries are internal bank matters, and stock market regulation is under SEBI.Final Answer:
To ensure the stability and soundness of the banking system → Option BQuick Check:
RBI regulatory objective = banking system stability ✅
Quick Trick: Remember RBI ensures banking stability, not government fiscal policy.
Common Mistakes:
- Confusing RBI’s role with government fiscal or SEBI’s stock market regulation.
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