📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Under Section 34 of the RBI Act, 1934, the liabilities

      of the Issue Department shall be an amount equal to the total of what?
      A The currency notes of the Government of India and bank notes in circulation Correct Answer Incorrect Answer
      B The capital and reserves of the Bank Correct Answer Incorrect Answer
      C The deposits of all scheduled banks Correct Answer Incorrect Answer
      D The gold and foreign securities held Correct Answer Incorrect Answer
      E The advances made to the Central Government Correct Answer Incorrect Answer

      Solution

      Section 34(1) provides that the liabilities of the Issue Department shall be an amount equal to the total of the amount of the currency notes of the Government of India and bank notes for the time being in circulation. This figure represents the currency in circulation that the Issue Department must back with corresponding assets under Section 33. The correct measure of the liabilities of the Issue Department is the total of currency notes and bank notes in circulation.

      Practice Next
      More Banking Related Laws Questions
      ask-question