GENERAL KNOWLEDGE

Detailed explanation-1: -Other than the Government of India, the Reserve Bank of India is the sole body authorised to issue banknotes in India.

Detailed explanation-2: -The Reserve Bank of India is the central bank of the country. Central banks are a relatively recent innovation and most central banks, as we know them today, were established around the early twentieth century. The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission.

Detailed explanation-3: -The rupee is subdivided into 100 paise (singular: paisa), though as of 2023, coins of denomination of 1 rupee are the lowest value in use whereas 2000 rupees is the highest. The issuance of the currency is controlled by the Reserve Bank of India.

Detailed explanation-4: -It describes the basic functions of the Reserve Bank as: “…to regulate the issue of Bank Notes and keeping of reserves to secure monetary stability in India and generally to operate the currency and credit system of the country to its advantage.”