Question

The legal basis of RBI’s authority to issue currency notes is provided under:

• A. Section 17 of the RBI Act, 1934
• B. Section 21 of the RBI Act, 1934
• C. Section 22(1) of the RBI Act, 1934
• D. Section 33 of the RBI Act, 1934

Answer 1

Answer:

C. Section 22(1) of the RBI Act, 1934

Section 22(1) states that RBI has the sole right to issue banknotes in India, except the one-rupee note, which is issued by the Government of India. This gives RBI the legal monopoly over currency issuance, forming a key part of its monetary function.