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      Question

      Under Section 46 of the RBI Act, 1934, the Central

      Government shall transfer to the Bank rupee securities of what value to be allocated to the Reserve Fund?
      A One crore of rupees Correct Answer Incorrect Answer
      B Two crores of rupees Correct Answer Incorrect Answer
      C Ten crores of rupees Correct Answer Incorrect Answer
      D Five crores of rupees Correct Answer Incorrect Answer
      E Fifteen crores of rupees Correct Answer Incorrect Answer

      Solution

      Section 46 provides that the Central Government shall transfer to the Bank rupee securities to the value of five crores of rupees to be allocated by the Bank to the Reserve Fund. This contribution to the Reserve Fund is distinct from the capital of the Bank under Section 4, although both happen to be five crores of rupees. The value of rupee securities transferred for the Reserve Fund is five crores of rupees.

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