Which among the following Institutions, has the sole right to issue bank notes of all denominations (except ₹ 1 note)?

Question

Question

This question was previously asked in

OSSC TGT Official Paper (Held On: 10 Mar, 2023 Shift 3)

Answer 1

The correct answer is the Reserve Bank of India.

Key Points

The Reserve Bank of India (RBI) was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
The RBI is the central bank of India, responsible for regulating the issue and supply of the Indian rupee.
It has the sole right to issue banknotes of all denominations except the one rupee note, which is issued by the Ministry of Finance.
The RBI plays a crucial role in the development strategy of the Government of India.

Important Points

The Reserve Bank of India is also responsible for maintaining monetary stability in India and ensuring adequate flow of credit to productive sectors.
One rupee notes and coins are issued by the Ministry of Finance, and they bear the signature of the Finance Secretary, not the RBI Governor.

Additional Information

Union Finance Ministry
- The Union Finance Ministry is responsible for managing the finances of the Government of India, including taxation, financial legislation, financial institutions, capital markets, center and state finances, and the Union Budget.
Bank Association of India
- This is a collective body of Indian banks that aims to promote and protect the interests of the banking industry.
Banks Board Bureau
- The Banks Board Bureau is an autonomous body of the Government of India tasked with improving the governance of public sector banks.