UPSC Previous Year Question | Prelims GS | 2025

Which of the following are the sources of income for the Reserve Bank of India? I. Buying and selling of Government bonds II. Buying and selling of foreign currency III. Pension fund management IV. Lending to private companies V. Printing and distributing currency notes. Select the correct answer using the code given below.

  1. I and II only
  2. II, III and IV
  3. I, III, IV and V
  4. I, II and V

Answer

Correct Answer

I, II and V

Explanation

RBI earns income mainly from open market operations (buying/selling government bonds), foreign exchange operations, and seigniorage from printing/distributing currency notes. RBI does not manage pension funds or lend directly to private companies, so III and IV are excluded, leaving I, II and V.

Topics: economy, income sources, rbi