Correct Option (d)
The Reserve Bank of India (RBI) performs several functions as a bankers' bank, which are essential for maintaining the stability and efficiency of the financial system.
- Statement 1: Commercial banks are mandated to maintain a certain percentage of their Net Demand and Time Liabilities (NDTL) as reserves with the RBI. This is known as the Cash Reserve Ratio (CRR) and implies that other banks retain their deposits with the RBI.
- Statement 2: The RBI acts as the 'lender of last resort' for commercial banks. It provides liquidity support to banks through various instruments, such as the Repo Rate and Marginal Standing Facility (MSF), during times of temporary liquidity shortages, thereby ensuring the smooth functioning of the banking system.
- Statement 3: The RBI advises and guides commercial banks on a range of monetary and banking matters. This includes issuing guidelines on interest rates, prudential norms, risk management, and ensuring compliance with monetary policy objectives.
Therefore, all three statements accurately describe the functions of the RBI in its capacity as a bankers' bank.
Incorrect Options
Since all three statements correctly describe the functions of the RBI as a bankers' bank, options that exclude any of these statements are incorrect.