Which of the following is NOT issued by the Reserve Bank of India?
- A.Ten rupee note
- B.Fifty rupee note
- C.One rupee note
- D.Five hundred rupee note
Correct answer
Explanation
The correct answer is C, one rupee note. The one rupee note is issued by the Government of India through the Ministry of Finance and carries the signature of the Finance Secretary, not of the Governor. All coins are likewise issued by the Government. The Reserve Bank, under Section 22 of its Act, has the sole right to issue banknotes of two rupees and above, and it also puts the Government's coins and one rupee notes into circulation as the Government's agent.
Options A, B and D are all currency notes of denominations above one rupee, so they are printed and issued by the Reserve Bank and bear the Governor's signature and the promise to pay the bearer. This is a question about who issues, not about who circulates, and that distinction is the whole trap.
Read the full article: Functions of the RBI: Monetary Policy and Tools
Practice Questions
View allIn which year was the RBI nationalised?
- A.1971
- B.1956
- C.1949
- D.1935
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The Reserve Bank of India began as a shareholders' bank and was taken into public ownership on 1 January 1949 under the Reserve Bank (Transfer to Public Ownership) Act, 1948.
Read the full explanation →The legal provisions governing the management of foreign exchange reserves are laid down in the Reserve Bank of India Act, ______.
- A.1947
- B.1934
- C.1923
- D.1971
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The Reserve Bank of India Act, 1934 is the statute that created the Bank and it carries the provisions on the custody and deployment of the country's foreign exchange reserves, which the Bank holds and invests.
Read the full explanation →Which of these institutions fixes the Repo Rate and the Reverse Repo Rate in India?
- A.Ministry of Finance
- B.State Bank of India
- C.Comptroller and Auditor General of India
- D.Reserve Bank of India
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Policy rates are announced by the Reserve Bank, and since 2016 the decision is taken by its Monetary Policy Committee of six members under the chairmanship of the Governor.
Read the full explanation →The Reserve Bank of India commenced its operations on
- A.1 April 1935
- B.1 July 1955
- C.1 January 1949
- D.1 April 1934
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The Reserve Bank of India Act was passed in 1934 and the Bank began work on the first day of April in the following year, with its central office at Calcutta.
Read the full explanation →The establishment of the Reserve Bank of India was recommended by which commission?
- A.Hilton Young Commission
- B.Narasimham Committee
- C.Fazl Ali Commission
- D.Sarkaria Commission
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Formally the Royal Commission on Indian Currency and Finance, it reported in 1926 and recommended that the currency and credit functions then divided between the Government and the Imperial Bank be placed in a single central bank.
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