Whose signature appears on Indian banknotes of denominations above one rupee?
- A.The Finance Secretary
- B.The Governor of the Reserve Bank of India
- C.The Union Finance Minister
- D.The President of India
Correct answer
Explanation
The correct answer is B, the Governor of the Reserve Bank of India. Every banknote above one rupee is issued by the Reserve Bank under Section 22 of its Act and carries the promise to pay the bearer, signed by the Governor, which is why these notes are called promissory notes of the Bank. Option A, the Finance Secretary, signs only the one rupee note, which the Government of India issues, so the option is correct for a single denomination and wrong for the question as asked. Option C, the Union Finance Minister, presents the budget and is the political head of the ministry but signs no currency. Option D, the President of India, signs Bills into Acts and appoints the Governor, but never a banknote. The distinction between the two signatures is the standard one-mark question on this topic.
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
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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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