Q. Which of the following are the sources of income for the Reserve Bank of India?

I. Buying and selling Government bonds
II. Buying and selling 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.
(a) I and II only
(b) II, III and IV
(c) I, III, IV and V
(d) I, II and V

32. निम्नलिखित में कौन-कौन से, भारतीय रिज़र्व बैंक की आय के स्रोत हैं?

I. सरकारी बॉन्डों का क्रय और विक्रय
II. विदेशी मुद्रा का क्रय और विक्रय
III. पेंशन निधि प्रबंधन
IV. निजी कंपनियों को ऋण देना
V. करेंसी नोटों का मुद्रण और वितरण

नीचे दिए गए kूट का प्रयोग कर सही उत्तर चुनिए।
(a) केवल I और II
(b) II, III और IV
(c) I, III, IV और V
(d) I, II और V

Answer: (d)

Explanation:

Statement 1 is correct: The RBI conducts Open Market Operations (OMOs), involving the buying and selling of government securities to regulate liquidity. It earns income through interest and capital gains on these transactions.

Statement 2 is correct: The RBI actively buys and sells foreign currency to stabilize the rupee and manage the foreign exchange reserves. It earns income from the interest on foreign securities and gains from currency management.

Statement 3 is not correct: Pension fund management is not a core function or income source of the RBI. Such functions are typically managed by institutions like the PFRDA or specific fund managers.

Statement 4 is not correct: The RBI does not lend directly to private companies. It lends primarily to commercial banks and the government, not the private corporate sector.

Statement 5 is correct: While RBI bears the cost of printing currency, it earns seigniorage income — the difference between the face value of money and the cost of producing it — which forms a part of its revenue.

Sources:
RBI Annual Report
Times of India - RBI Profit and Dividend Explained
BusinessLine - Seigniorage Explained
The Hindu - RBI Surplus Explained