Reserve Bank of India performs many functions but which of the following is not among them ?
This MPSC previous-year question is drawn from MPSC Group B Combined Pre 2026 (English). It belongs to the Economics section and is reproduced here in English exactly as it appeared in the official Maharashtra Public Service Commission paper, along with the four options, the official Set A answer key and a compact explanation of why the correct option is correct.
Correct answer: C
Explanation
The verified answer here is option C. The RBI does many things, but 'regulation of the share market' is not one of them — that job belongs to SEBI. So the function that does NOT fit the RBI is the share-market one.
Why this question matters
Questions of this type recur almost every year across MPSC Group B, Group C, PSI and Gazetted Civil Services prelims because economics carries a high, stable weightage in the syllabus. Practising the original paper wording — rather than paraphrased mock questions — is the fastest way to internalise MPSC's option-framing style and the specific way its examiners plant trick choices.
How to attempt this in the exam
Watch for negation traps — words like "not", "except", "incorrect" that flip the intent of the question. MPSC deliberately embeds them in economics items to catch aspirants who read the question in a hurry. Re-read the stem with a mental highlight on any negation word before selecting an option.
Subject-specific tip
Tip for Economics: connect every scheme to a launch year, the implementing ministry and the primary beneficiary. MPSC Economics options often swap the launch year or the implementing ministry — that is the easiest elimination.
Economic institutions and the fiscal machinery
Institutional economics is a MPSC favourite. The Reserve Bank of India (established 1935, nationalised 1949) with its monetary-policy toolkit (repo rate, reverse repo, MSF, CRR, SLR) is asked every year. The Securities and Exchange Board of India (1988 / statutory 1992), the Insurance Regulatory and Development Authority (1999), the Pension Fund Regulatory and Development Authority (2003), the Insolvency and Bankruptcy Board of India (2016) and the Financial Stability and Development Council recur in every recent paper.
Fiscal-federalism items rest on the Finance Commission (constituted every five years under Article 280) — its terms of reference, the horizontal devolution formula (population, area, income distance, forest cover, tax effort, demographic performance) and the vertical share it recommends. The Fifteenth Finance Commission's cycle (2021–26) and the sixteenth (from 2026) are examinable. The Goods and Services Tax framework — the 101st Amendment, the GST Council and its dispute-resolution role, the tax slabs (0, 5, 12, 18, 28) and the compensation cess — is also a recurring set.
For Maharashtra's economy specifically, memorise the sectoral shares (agriculture roughly 12 percent of GSDP, industry 27 percent, services 61 percent as of the last Maharashtra Economic Survey), the top three GSDP-contributing districts (Mumbai suburban, Pune, Thane) and the concentration of the state's industrial output around the Mumbai-Pune-Nashik golden triangle and the Aurangabad and Nagpur secondary clusters.
Source and editorial process
Source: MPSC Group B Combined Pre 2026 (English). This question, its four options and the marked correct answer are transcribed verbatim from the official Maharashtra Public Service Commission Set A paper. Our editorial team cross-checks each question against the original PDF released on mpsc.gov.in and against the corresponding official answer key.
We never paraphrase the wording. Where MPSC has issued a revised key after an objection round, the answer highlighted above reflects the revised key and the revision is logged in our internal change-log. If you spot a discrepancy, please email us at dontknowacademy@gmail.com — we acknowledge every report within 24 hours and push a fix within 48 hours.
Related study material
Deepen your preparation on this topic with our long-form MPSC study guides. Every guide is written specifically for the Maharashtra Public Service Commission preliminary syllabus and takes twelve to sixteen minutes to read in full.
- MPSC Exam PatternGroup B, Group C, PSI, Gazetted CS & TS prelims — marks, syllabus, negative marking, cut-offs.
- MPSC Preparation Strategy6-month plan, book list, daily routine, PYQ usage, mock-test strategy.
- Indian Polity for MPSCConstitution, Fundamental Rights, DPSPs, Parliament, state government, key amendments.
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