BANKING AFFAIRS

Detailed explanation-1: -1. The relationship between RBI and the Bank maintaining the currency chest is that of? Answer c) Principal and Agent.

Detailed explanation-2: -Each Issue Office of RBI is responsible for the supply and withdrawal of banknotes and coins to and from the chests in its circle. The annual requirement of notes and coins of currency chests is assessed through indents submitted by the chests through their link offices.

Detailed explanation-3: -The Department of Currency Management has the responsibility of administering the functions of currency management, a core function of the Reserve Bank in terms of the Reserve Bank of India Act, 1934. Currency management essentially relates to issue of notes and coins and retrieval of unfit notes from circulation.

Detailed explanation-4: -The currency chests are located in the branches of the selected banks and are administered by the RBI. The RBI representatives must inspect these currency chests periodically and maintain records that they will share with their senior officials.

Detailed explanation-5: -What is Currency Chest? A Currency Chest is a depository that belongs to the Reserve Bank Of India (RBI). The central bank stores excess money for banks and ATMs in such a Currency Chest. Such chests are held at the premises of select bank branches across India.