Decimal coinage, under which the rupee was divided into one hundred paise, was introduced in India in which year?
- A.1947
- B.1950
- C.1957
- D.1964
Correct answer
Explanation
The correct answer is C, 1957. Decimal coinage came into force on 1 April 1957 under the Indian Coinage Amendment Act, and the rupee, which had earlier been divided into sixteen annas, each of four pice or twelve pies, was divided into one hundred paise; the new coin was called the naya paisa until 1964, when the word naya was dropped. Option A, 1947, is the year of independence but the old anna system continued then. Option B, 1950, is the year the Constitution came into force and the first coins of the Republic were struck, with the Lion Capital of Ashoka replacing the portrait of the King, but the division of the rupee was unchanged. Option D, 1964, is the year the prefix naya was dropped from the name of the coin, which makes it a careful candidate's trap.
Read the full article: Indian Currency: Notes, Coins, Mints and Demonetisation
Practice Questions
View allUnder which section of the Reserve Bank of India Act, 1934 does the Reserve Bank have the sole right to issue banknotes?
- A.Section 17
- B.Section 22
- C.Section 42
- D.Section 49
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Section 22 of the Reserve Bank of India Act, 1934 confers on the Reserve Bank the sole right to issue banknotes in India, and the Issue Department of the Bank keeps this function separate from its banking business.
Read the full explanation →Which currency note in India is issued by the Government of India and not by the Reserve Bank of India?
- A.One rupee note
- B.Two rupee note
- C.Five rupee note
- D.Ten rupee note
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The one rupee note is issued by the Government of India under the Coinage Act and carries the signature of the Finance Secretary, while every other denomination is a banknote issued by the Reserve Bank under Section 22 of its Act and carries the signature of the Governor.
Read the full explanation →What is the highest denomination of banknote that can be issued under the Reserve Bank of India Act, 1934 without amending it?
- A.Rupees two thousand
- B.Rupees five thousand
- C.Rupees ten thousand
- D.Rupees one lakh
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Section 24 of the Reserve Bank of India Act, 1934 permits banknotes of denominations up to ten thousand rupees, so a note of a higher value would need an amendment of the Act by Parliament.
Read the full explanation →Since which year has the note issue of the Reserve Bank of India been governed by the Minimum Reserve System?
- A.1935
- B.1949
- C.1956
- D.1969
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An amendment of the Reserve Bank of India Act in 1956 replaced the proportional reserve system with the Minimum Reserve System, under which the Bank must hold assets worth two hundred crore rupees against the note issue, of which gold must be not less than one hundred fifteen crore rupees…
Read the full explanation →A star below the year of minting on an Indian coin indicates which mint?
- A.Mumbai
- B.Hyderabad
- C.Noida
- D.Kolkata
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The mint of an Indian coin can be read from the small mark placed below the year of minting, and a five-pointed star stands for the Hyderabad mint.
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