RBI Functions – Banker to other banks

41. The RBI manages and invests foreign exchange reserves to facilitate external trade and payment transactions. (True/False)

42. The Reserve Bank of India does not play any role in the regulation and supervision of cooperative banks. (True/False)

43. The sale of government securities by the RBI to banks results in an increase in the government’s borrowing costs. (True/False)

44. The RBI undertakes the inspection and examination of scheduled commercial banks through on-site and off-site supervision. (True/False)

45. The Reserve Bank of India does not have the authority to issue directions and guidelines to banks for preventing frauds and malpractices. (True/False)