Which of the following is not a function of Central Bank?

The correct option is: It accepts deposits and gives loans to people.

To understand why this is the correct choice, we need to analyze the roles and functions of a Central Bank versus commercial banks in an economy:
1. Issuing Currency: The Central Bank has the exclusive monopoly over the production and distribution of the country's official currency notes and coins. This ensures uniformity and trust in the monetary system.
2. Banker to the Government: The Central Bank acts as a financial agent, advisor, and banker to the government. It manages the government's public debt, maintains its accounts, and carries out banking transactions on its behalf.
3. Controlling Money Supply: The Central Bank is responsible for maintaining price stability and controlling inflation. It regulates the supply of money and credit in the economy using monetary policy instruments such as interest rates (repo rate, bank rate), open market operations, and reserve requirements.

In contrast, dealing directly with the public by accepting daily savings deposits and offering retail loans (such as home loans or personal loans) is the defining characteristic of commercial banks. The Central Bank operates as the "banker's bank" and does not provide public banking services to individual citizens. Therefore, accepting deposits and giving loans to the public is not a function of the Central Bank.