The Reserve Bank of India issues currency notes under
Options:
A . maximum fidciuary system
B . fixed fiduciary system
C . minimum reserve system
D . proportional reserve system
Answer: Option C Answer: (c) Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue banknotes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as an agent of the Government. The system as it exists today is known as the minimum reserve system.
Submit Comment/FeedBack