Under Section 20 of the RBI Act, 1934, the Bank is

Solution

Section 20 imposes on the Bank the obligation to transact Government business. It must undertake to accept monies for the account of the Central Government, to make payments up to the amount standing to the credit of its account, and to carry out its exchange, remittance and other banking operations, including the management of the public debt of the Union. This is a foundational central banking function. The correct obligation under Section 20 is accepting monies, making payments and managing the public debt.