On which date were the five hundred and one thousand rupee notes declared to cease being legal tender in India?
- A.8 November 2016
- B.19 May 2023
- C.1 April 2017
- D.16 January 1978
Correct answer
Explanation
The correct answer is A, 8 November 2016. The notes of five hundred and one thousand rupees in the Mahatma Gandhi series ceased to be legal tender from the midnight of 8 November 2016, the stated purposes being action against unaccounted money, counterfeit currency and the financing of terrorism; a new five hundred rupee note and a two thousand rupee note of the Mahatma Gandhi New series followed, and a Constitution Bench of the Supreme Court upheld the decision by a majority in January 2023. Option B, 19 May 2023, is the date the Reserve Bank withdrew the two thousand rupee note from circulation, which is a withdrawal and not a demonetisation. Option C, 1 April 2017, is not connected with this step. Option D, 16 January 1978, belongs to the earlier demonetisation of the one thousand, five thousand and ten thousand rupee notes.
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
Show answer
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
Show answer
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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