BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Fixed Fiduciary System
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Maximum Fiduciary System
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Percentage Reserve System
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Minimum Reserve System
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Detailed explanation-1: -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-2: -In india note is printed by RBI( central bank of india) on the basis of MRS( Minimum Reserve System). This system was adopted by RBI in 1956. Under this system the central bank is required to keep Rs 115 crore in gold and Rs 85 crore in foreign securities.
Detailed explanation-3: -The Minimum Reserve System is the currency issue system followed by the RBI at present. It was adopted in 1956. The Minimum Reserve System which requires the RBI to keep a minimum reserve of Rs 200 crores comprising foreign currencies, gold coin and gold bullion (minimum of Rs 115 crore in the form of gold).
Detailed explanation-4: -Simple Deposit System: Under this system, the monetary authority is required to keep 100% of the bullion (gold or silver) for every note issued. That is why it is also known as the Full Reserve System.
Detailed explanation-5: -The Reserve Bank has introduced banknotes in the Mahatma Gandhi Series since 1996 and has so far issued notes in the denominations of Rs. 5, Rs. 10, Rs. 20, Rs.