Question
Who among the following is not involved in the issuance
of currency notes in India? I. Reserve Bank of India (RBI) issues all currency notes except for one rupee notes. II. Ministry of Finance issues one rupee notes and coins.Solution
The Reserve Bank of India (RBI) is responsible for the issuance of all currency notes in India, starting from the ₹2 denomination upwards, as part of its monetary functions and as dictated by the RBI Act of 1934. The one rupee note, however, remains an exception, as it is issued by the Ministry of Finance. This unique arrangement marks the one rupee note and all coins as liabilities of the Government of India, and they bear the signature of the Finance Secretary, whereas notes of higher denominations are signed by the RBI Governor and are liabilities of the central bank.
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