Question

The reserve requirements for note issue are laid down under which section of the RBI Act?

• A. Section 22
• B. Section24
• C. Section 33
• D. Section 40

Answer 1

Answer:

C. Section 33

Section 24: Lays down the minimum reserve requirements (in gold and approved government securities) that RBI must maintain to back the currency notes it issues. Section 33: Deals with the powers of RBI to make advances or loans in certain cases, not about currency reserves. Answer: Section 24