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why option 3 not correct?

Neyawn,jatin393
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Why it is called a banker is because it works as bank. Lending money and taking deposits.

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There are two aspects to statement 3

One, RBI supervises but does not advise bank on such matters 

Two, even if it did , that is not why it would be banks banker

You will have to (a) read basic text multiple times to clearly know that 1,2 are correct. Once you know that, you will realise point 3 is artificially created to confuse you.

I can think of another statement 4 which may be logically true and even factually true but that wouldn’t make RBI banks banker

I am no knight. Do not call me Sir|Philosophy behind ForumIAS| No Coaching Review / Rant / promo / Complaint Allowed including ForumIAS Academy. All such threads will be deleted. I am working to rebuild ForumIAS Community in the limited time span that I have. Coaching threads attract wrong crowd / people. ForumIAS Academy will run limited support threads on the community. No new course launches will be announced here.

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