Answer: Option C
Answer: (c)
Originally, the assets of the Issue Department were to consist of not less than two-fifths of gold coin, gold bullion or sterling securities provided the amount of gold was not less than Rs.40 crore in value.
The remaining three-fifths of the assets might be held in rupee coins, Government of India rupee securities, eligible bills of exchange and promissory notes payable in India.
Due to the exigencies of the Second World War and the post-war period, these provisions were considerably modified.
Since 1957, the Reserve Bank of India is required to maintain gold and foreign exchange reserves of Rs.200 crore (2 billion), of which at least Rs.115 crore should be in gold and Rs.85 crore in the form of Government Securities. The system as it exists today is known as the minimum reserve system.