BANKING AFFAIRS

Detailed explanation-1: -6. What is the role of the Reserve Bank of India in currency management? In terms of Section 22 of the Act, Reserve Bank has the sole right to issue banknotes in India.

Detailed explanation-2: -ISSUER OF CURRENCY The Reserve Bank is the nation’s sole note issuing authority. Along with the Government of India, we are responsible for the design, production and overall management of the nation’s currency, with the goal of ensuring an adequate supply of clean and genuine notes.

Detailed explanation-3: -The RBI follows the minimum reserve system, wherein it has to maintain a minimum quantity of gold bullion as reserves to issue currency.

Detailed explanation-4: -Which of the following is issued by RBI? Notes: Currency notes are issued by RBI.

Detailed explanation-5: -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.