Q1. Which of the following is the nodal agency for implementing monetary policy? (I) State Bank of India (II) Union Bank (III) Reserve Bank of India
A Only I
B Only II
C I, II and III
D Only III Correct
Explanation
The Reserve Bank of India is the authority that formulates and implements monetary policy in India, including policy rates and liquidity measures. The State Bank of India is a major public sector commercial bank, so it follows the monetary policy framework rather than setting it. Union Bank is also a commercial bank and has no nodal role in policy implementation. The combined choice including all three is therefore incorrect because it treats regulated banking institutions as policy authorities.