Question

Which of the following statements is true?

विकल्प

• All financial institutions .are banking institutions.

• RBI has the complete authority to issue currency notes.

• The government of India issues currency notes

• Banking institutions issue currency notes

Answer 1

RBI has the complete authority to issue currency notes.

Explanation:

The central bank takes on the role of a monopolist in currency-issuing in order to preserve currency homogeneity across the country and to retain centralised control over the money supply process.