The one rupee note in India is issued by the Government of India and bears the signature of the
- A.Governor of the Reserve Bank of India
- B.Finance Secretary
- C.Union Finance Minister
- D.Deputy Governor of the Reserve Bank of India
Correct answer
Explanation
The correct answer is B, the Finance Secretary. The one rupee note is not a Reserve Bank note at all: it is issued by the Government of India through the Ministry of Finance, is a legal tender note of the government and carries the signature of the Finance Secretary. All coins are likewise minted and issued by the government.
Option A is wrong for the one rupee note, though the Governor does sign every note of two rupees and above, which the Bank issues under Section 22 of its Act; the distinction is the whole point of the question. Option C is wrong because the Finance Minister signs no currency note. Option D is wrong because a Deputy Governor signs no currency note either, although Deputy Governors sign other instruments of the Bank and sit on the Monetary Policy Committee.
Read the full article: RBI and Monetary Policy: Functions, MPC and Credit Control
Practice Questions
View allThe Reserve Bank of India was established on the recommendation of which commission?
- A.The Hilton Young Commission
- B.The Chamberlain Commission
- C.The Fowler Committee
- D.The Narasimham Committee
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This body, formally the Royal Commission on Indian Currency and Finance, reported in 1926 and recommended the creation of a central bank separated from the government.
Read the full explanation →The Reserve Bank of India was nationalised with effect from
- A.1 April 1935
- B.1 January 1949
- C.15 August 1947
- D.19 July 1969
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The Bank began as a shareholders' institution, and the Reserve Bank (Transfer to Public Ownership) Act, 1948 transferred its shares to the central government with effect from the first day of 1949, since when it has been fully owned by the Government of India.
Read the full explanation →The repo rate is the rate at which
- A.Commercial banks park their surplus funds with the Reserve Bank
- B.The Reserve Bank lends short term funds to commercial banks against government securities
- C.A bank lends to its most creditworthy customers
- D.The government borrows from the open market
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In a repurchase agreement a bank sells government securities to the Reserve Bank and agrees to buy them back the next day at a fixed price; the difference is the interest, and the rate is the repo rate.
Read the full explanation →How many members does the Monetary Policy Committee of India have?
- A.Four
- B.Five
- C.Six
- D.Seven
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Three of them come from the Reserve Bank, the Governor as chairperson, the Deputy Governor in charge of monetary policy and an officer of the Bank nominated by the Central Board, and three are appointed by the central government from among persons of ability and integrity with knowledge of economics…
Read the full explanation →The Monetary Policy Committee was given statutory basis by amending the Reserve Bank of India Act through which law?
- A.The Finance Act, 2016
- B.The Banking Regulation Act, 1949
- C.The Fiscal Responsibility and Budget Management Act, 2003
- D.The Foreign Exchange Management Act, 1999
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It amended the Reserve Bank of India Act, 1934 to insert the provisions on the inflation target and on the Monetary Policy Committee, so that the policy rate is now set by a committee and not by the Governor alone, and the framework of flexible inflation targeting became law.
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