UPSC CSE Prelims
Question 67
Which of the following are the sources of income for the Reserve Bank of India?
- Buying and selling Government bonds
- Buying and selling foreign currency
- Pension fund management
- Lending to private companies
- Printing and distributing currency notes
Select the correct answer using the code given below.
View correct answer and explanation
Correct answer: D
Correct Option: D (I, II and V)
Explanation: RBI earns from holdings and operations in government securities and foreign-exchange assets. The answer key also counts the seigniorage-related benefit of currency issuance; it does not treat pension management or ordinary corporate lending as its sources.
Statement / Pair / Item-wise Analysis:
I: Included-income on government bonds and open-market operations.
II: Included-foreign-reserve investments and FX operations.
III: Excluded-RBI is not a commercial pension-fund manager.
IV: Excluded-it does not routinely lend to private companies.
V: Included in the supplied answer-key framing-currency-issue/seigniorage income, not a fee paid for printing notes.
Option-wise Analysis:
A. Incorrect-omits V which the answer requires.
B. Incorrect-includes IV, III despite the item-wise findings; omits I, V which the answer requires.
C. Incorrect-includes IV, III despite the item-wise findings; omits II which the answer requires.
D. Correct-this matches the facts and the item-wise assessment above.