Which of the following statements is NOT true about Reserve Bank of India?

CONCEPT: RBI regulates commercial banks' reserves through two distinct categories of tools: (1) ratio-based tools -- the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) -- where RBI directly mandates the percentage of deposits banks must hold as reserves; and (2) rate-based tools -- the repo rate, reverse repo rate, and MSF rate -- which set the cost of overnight liquidity but do not themselves alter the mandated reserve-deposit ratio. Beyond reserve management, RBI (established under the RBI Act, 1934) is India's monetary authority, conducts monetary policy through the statutory Monetary Policy Committee (MPC) framework -- which gives RBI operational autonomy over policy execution while the inflation target and part of the MPC's composition remain government-set -- and undertakes sterilisation (via open market operations / the Market Stabilisation Scheme) to offset the money-supply impact of external shocks.

APPLICATION (checking each statement):

• The reserve-deposit ratio (CRR) is a distinct, directly-mandated ratio; the reverse repo rate is a separate overnight rate RBI pays banks for parking surplus funds. Moving the reverse repo rate changes the incentive to park funds with RBI but does not itself change the mandated reserve ratio banks must hold -- this statement wrongly attributes control of the ratio to the repo-rate lever.

• RBI functions as the monetary authority of the country under the RBI Act, 1934 -- this matches RBI's statutory mandate.

• RBI's monetary-policy role runs through the statutory MPC framework, which gives RBI substantial operational autonomy in policy execution for the economy's benefit even though the inflation target and part of the MPC's composition are set by the government -- read in that operational sense, this matches RBI's established role.

• RBI conducts sterilisation (open market operations / the Market Stabilisation Scheme) specifically to neutralise the money-supply effect of external shocks such as capital inflows -- this matches RBI's function.

CROSS-CHECK: Cross-checking against RBI's own explainer on monetary policy instruments and the standard macroeconomics treatment of reserve money confirms CRR/SLR (ratios) and repo/reverse-repo (rates) are governed as separate levers.

Hence, the statement that is NOT true about the RBI is the one describing the reserve-deposit ratio as being controlled via the reverse repo rate.