Question

Reserve Bank of India is given the monopoly of note issue under which section of RBI Act of 1934 ?

• A. Section 23(1)
• B. Section 20(3)
• C. Section 22(1)
• D. Section 18(2)

Answer 1

Answer:

C. Section 22(1)

RBI as Currency Authority:

• Under Section 22(1) of the Reserve Bank of India Act of 1934, the Reserve Bank of India is given the monopoly of note issue
• One rupee notes and coins are issued by Ministry of Finance of GOI.
• The Reserve Bank maintains two departments namely issue department and Banking department
• The issue department of the Reserve Bank is entrusted with the task of printing and issue currency notes.
• As per the section 33 of the Reserve Bank of India Act, the issue department is required to maintain reserves in the form of gold coins and bullion, foreign securities, rupee coin, Government of India securities such bills of exchange and promissory notes payable in India as are eligible for purchase by the Bank