ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Currency notes are issued by the Finance Commission
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All the nationalized banks can issue the currency notes.
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Only the Reserve Bank of India can issue currency notes.
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Any individual or organization can issue cur¬rency notes with the permission of the govt.
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Detailed explanation-1: -In terms of Section 22 of the Act, Reserve Bank has the sole right to issue banknotes in India. Section 25 states that the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by the Central Board of RBI.
Detailed explanation-2: -The Reserve Bank has the sole authority to issue banknotes in India. Reserve Bank, like other central banks the world over, changes the design of banknotes from time to time.
Detailed explanation-3: -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. The One Rupee note is issued by Ministry of Finance and it bears the signatures of Finance Secretary, while other notes bear the signature of Governor RBI.
Detailed explanation-4: -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-5: -Rupees Five-First Note issued by Reserve Bank of India This was followed by Rs 10 in February, Rs 100 in March and Rs 1, 000 and Rs 10, 000 in June 1938.