Question

Which regulatory body is the only note issuing authority in India?

• A. Small Industries Development Bank of India.
• B. Insurance Regulatory and Development Authority of India
• C. Reserve Bank of India
• D. Securities and Exchange Board of India

Answer 1

Answer:

C. Reserve Bank of India

• The Reserve Bank of India (RBI), the country's monetary authority, issues currency notes in India.

• The RBI Act of 1934 authorises the central bank to print all banknotes except the one rupee note.

• Under the Coinage act of 1909, the Government of India issues coins and one rupee note.

• Apart from currency notes and coins, the public's savings or current account deposits in commercial banks are also considered money because cheques drawn on these accounts are used to pay transactions.

• Demand deposits are those that are payable by the bank on demand from the customer.