The Reserve Bank of India (RBI):The Reserve Bank of India is the central bank of India. It was established on 1st April 1935 and its headquarters is in Mumbai, Maharastra, India. The RBI is responsible for the regulation of the Indian Banking System and also for the issue and supply of the Indian rupee. The RBI works to promote the economic development of the nation and also manages the country's main payment system. The RBI is entrusted with the management of the public debt and the issue of new loans and treasury bills on behalf of the central and state Governments. The RBI consists of a 21-member central board of directors involving the governor, four deputy governors, two finance ministry representatives, ten government nominated directors, and four directors who represent local boards for Mumbai, Kolkata, Chennai, and Delhi. The Governor and the Deputy Governors of the Reserve Bank of India are appointed by the Central Government. Therefore, (A) and (R) both are correct but (R) is not the right explanation of (A). Policy Rates/Ratios as of May 2020:Repo Rate4. 00%Reverse Repo Rate3. 35%Marginal Standing Facility Rate4. 25%Bank Rate4. 25%Cash Reserve Ratio3. 00%Statutory Liquidity Ratio18. 00%