6
Question
Currency is issued by _______.
Currency is issued by _______.
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Solution
The correct option is A RBI
The
Reserve Bank has the sole right to issue currency notes, except one rupee notes
which are issued by the Ministry of Finance.The RBI follows a minimum reserve
system in the note issue. Initially, it used to keep 40 per cent of gold
reserves in its total assets. But, since 1957, it has to maintain only Rs. 200
crores of gold and foreign exchange reserves, of which gold reserves should be
of the value of Rs. 115 crores. As such, India has adopted the “managed paper
currency standard.”As a currency authority, the Reserve Bank provides different
denominations of currency for facilitating the transactions of the Central and
State Governments, and caters to the exchange and remittance needs of the
public, banks as well as the government departments.The bank has established 14
offices of the Issues Department for the discharge of its currency functions.
At all the other centres of the country, the currency requirements are met by
the bank through currency chests. Currency chests are maintained by the bank
with the branches of the SBI group, Government Treasuries and Sub-Treasuries,
and public sector banks.
The Reserve Bank has the sole right to issue currency notes, except one rupee notes which are issued by the Ministry of Finance.The RBI follows a minimum reserve system in the note issue. Initially, it used to keep 40 per cent of gold reserves in its total assets. But, since 1957, it has to maintain only Rs. 200 crores of gold and foreign exchange reserves, of which gold reserves should be of the value of Rs. 115 crores. As such, India has adopted the “managed paper currency standard.”As a currency authority, the Reserve Bank provides different denominations of currency for facilitating the transactions of the Central and State Governments, and caters to the exchange and remittance needs of the public, banks as well as the government departments.The bank has established 14 offices of the Issues Department for the discharge of its currency functions. At all the other centres of the country, the currency requirements are met by the bank through currency chests. Currency chests are maintained by the bank with the branches of the SBI group, Government Treasuries and Sub-Treasuries, and public sector banks.
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