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

Which of the following are the sources of income for the Reserve Bank of India? (UPSC 2025)

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

• Government Bonds trading: The RBI actively participates in open market operations, earning from bond transactions.
• Foreign exchange operations: It intervenes in the forex market to stabilize the rupee and earns from currency transactions.
• Seigniorage: The profit from printing currency (cost of production is less than face value) is a major income source.
• It does not manage pension funds or lend to private companies directly.