Question

The RBI issues currency notes under the

• A. Federal Reserve System
• B. Maximum Fiduciary System
• C. Fixed Minimum Reserve System
• D. Monetary Benefit System

Answer 1

Answer:

C. Fixed Minimum Reserve System

• Under Section 22 of the Reserve Bank of India Act, RBI has sole right to issue currency notes of various denominations except one rupee notes. The One Rupee note is issued by Ministry of Finance and It bears the signatures of Finance Secretary, while other notes bear the signature of Governor RBI.