Which of the following statements is NOT true about Reserve Bank of India?

ARBI can affect the reserve deposit ratio of commercial banks by adjusting the value of the reverse repo rate.
BIt acts as the monetary authority of the country
CRBI is the independent authority for conducting monetary policy in the best interests of the economy.
DIt sterilises the money supply in the economy against external shocks.

Correct answer: A

Explanation

The RBI does not change the reserve deposit ratio of banks through the reverse repo rate. The ratio is changed directly through CRR/SLR, while the reverse repo rate only affects short-term liquidity. The other three statements are true.

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Which of the following statements is NOT true about Reserve Bank of India?

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