GENERAL KNOWLEDGE

GK

BANKING AWARENESS AND SEBI

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
RBI has the legal right to issue bank notes, under which act?
A
RBI Act
B
Coinage Act
C
Companies Act
D
Banking Regulation Act
Explanation: 

Detailed explanation-1: -The Bank shall have the sole right to issue bank notes in India. Bank notes shall, unless a contrary intention appears, apply to all currency notes of the Government of India issued either by the Central Government or by the Bank.

Detailed explanation-2: -The RBI can accept deposits from the central and state governments without interest. It can purchase and discount bills of exchange from commercial banks. It can purchase foreign exchange from banks and sell it to them. It can provide loans to banks and state financial corporations.

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