Consider the following statements about currency in India:

1. The Reserve Bank of India has the sole right to issue banknotes under Section 22 of the RBI Act, 1934.

2. The Reserve Bank of India mints the country’s coins.

3. The one-rupee note is issued by the Government of India.

Which of the statements given above is/are correct?A.1 onlyB.1 and 3 onlyC.2 and 3 onlyD.1, 2 and 3

Question

Consider the following statements about currency in India: 1. The Reserve Bank of India has the sole right to issue banknotes under Section 22 of the RBI Act, 1934. 2. The Reserve Bank of India mints the country's coins. 3. The one-rupee note is issued by the Government of India. Which of the statements given above is/are correct?

Accepted Answer

1 and 3 only. Statements 1 and 3 are correct. Section 22 gives the RBI the sole right to issue banknotes. The Government of India issues the one-rupee note. Statement 2 is wrong: the Government designs and mints coins under the Coinage Act, 2011, and the RBI only distributes them. Read more: IndEco0334 — Currency Management in India: Notes, Coins and Polymer Notes.

Assertion (A): A shopkeeper cannot be forced to accept a payment of ₹5,000 made entirely in ₹10 coins. Reason (R): Coins of one rupee and above are legal tender only for sums up to ₹1,000 in a single transaction. Select the correct answer:

Keep practicing

Beyond the answer

Leave a ReplyCancel reply

Discover more from MCQ Questions