BANKING AFFAIRS

Detailed explanation-1: -The coins are issued for circulation only through the Reserve Bank in terms of Section 38 of the RBI Act. 4. What is a currency chest? To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorised select scheduled banks to establish currency chests.

Detailed explanation-2: -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-3: -Coins are minted by the Government of India. The Reserve Bank is the agent of the Government for distribution, issue and handling of coins. Four mints are in operation: Mumbai in Maharashtra, Noida in Uttar Pradesh, Kolkata, and Hyderabad.

Detailed explanation-4: -Reserve bank of India has the sole right to issue currency notes of various denominations except one rupee notes under Section 22 of Reserve bank of India Act. The one rupee note and coins are issued by ministry of finance and it bears the signature of Finance Secretary.

Detailed explanation-5: -The coins are issued for circulation only through the Reserve Bank in terms of the RBI Act. Coins in India are presently being issued in denominations of 10 paise, 20 paise, 25 paise, 50 paise, one rupee, two rupees and five rupees.