Under which provision of the RBI Act, 1934 is the Reserve Bank vested with the sole right to issue bank notes in India?

Section 22 confers upon the Reserve Bank the sole right to issue bank notes in India, subject to the provisions of the Act. This monopoly of note issue is a defining central-banking function, and the notes so issued are legal tender under Section 26. Section 3 deals with the establishment and incorporation of the Bank, Section 17 with the business the Bank may transact, and Section 20 with the Bank's obligation to transact Government business. A common trap is confusing Section 22 (right to issue) with Section 26 (legal tender character and the demonetisation power).