Skip to content

Explain the role of… (Social Science 2026 32/4/1 Q36)

questionbuddy.in/q/cbse-10-social-science-2026-32-4-1-q36-role-reserve-bank-india-indian

Social ScienceCBSE Class 10 · Board exam 2026, set 32/4/1 · 3 marks · Short answer

CBSE Class 10 Social Science 2026: question 36

Set in the CBSE Class 10 board exam of 2026, paper 32/4/1, section D, question 36, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q36 · 3 marks · Short answerMoney and Credit

Explain the role of Reserve Bank of India in the Indian economy.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 32/4/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Who issues rupee notes?

Hint 2

What does the RBI monitor about banks' deposits and loans?

Hint 3

Whom should banks lend to besides businesses?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. The RBI issues currency notes on behalf of the central government. Under Indian law no other individual or organisation may issue currency, and no one can legally refuse a payment made in rupees.

    1 mark

  2. It supervises the formal sources of loans. It checks that banks keep a minimum cash balance out of their deposits, and banks must periodically report to it how much they lend, to whom and at what interest rate.

    1 mark

  3. It ensures banks lend not only to profit-making businesses and traders but also to small cultivators, small-scale industries and small borrowers.

    1 mark

Answer: The RBI issues currency, supervises banks' functioning and their cash balances, and ensures loans reach small borrowers as well.

Where the marks are

  • Issues currency; sole authority (1 mark)
  • Supervises banks, minimum cash balance, reporting of lending (1 mark)
  • Ensures loans to small borrowers and sectors (1 mark)

Revise the chapter

  • Chapter: Money and Credit (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Money and Credit, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 32/4/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.