BANKING AFFAIRS

Detailed explanation-1: -The highest denomination note ever printed by the Reserve Bank of India was the ₹10000 note in 1938 which was demonetized in January 1946. The ₹10000 was again introduced in 1954. These notes were demonetized in 1978. 5.

Detailed explanation-2: -RBI can issue any note of any denomination but NOT exceeding Rs. 10, 000. The notes denomination is notified by Government and RBI acts accordingly. Under Section 22 of the Reserve Bank of India Act, RBI has sole right to issue currency notes of various denominations except one rupee notes.

Detailed explanation-3: -High denomination notes (Rs. 1, 000, 5, 000, and 10, 000) were reintroduced in 1954. High denomination notes were once again demonetised in 1978 for the same reasons as the 1946 demonetisation.

Detailed explanation-4: -The RBI is permitted to print currency up to 10, 000 rupee notes. To deter counterfeiting and fraud, the Indian government withdrew the 500 and 1, 000 rupee notes from circulation in 2016.

Detailed explanation-5: -Presently, the Reserve Bank issues banknotes in denominations of ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2000. Coins in circulation comprise 50 paise and ₹1, ₹2, ₹5, ₹10 and ₹20 denominations. VIII.