Question

Consider the following statements:
1) Reserve Bank of India can print and issue currency notes of denominations from two rupee notes to ten-thousand rupee notes.
2) Reserve Bank of India maintains a separate issue department to look after currency issue.
Which of the statement(s) given above is/are correct?

• A. Only 1
• B. Only 2
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is C Both 1 and 2

• As per RBI Act, RBI can issue notes of any denomination not exceeding Rs 10000. Government notifies the denomination of notes and the RBI acts accordingly.
  
• RBI has a separate Issue department whose assets and liabilities are kept separate from the Banking department.