Question

Which bank in India has the sole authority to issue currency notes?

Hint:

Remember:

• RBI = Issuer of all currency notes
• ₹1 note and coins = Government of India

Answer 1

Concept: In every country, the authority to issue currency is usually given to a central bank. In India, this responsibility lies with the Reserve Bank of India (RBI), which acts as the nation’s central monetary authority. Legal Basis: The power to issue currency notes in India is granted under the Reserve Bank of India Act, 1934. According to this act:

• RBI has the sole authority to issue currency notes.
• This ensures uniformity and stability in the monetary system.

Important Exception: While RBI issues all currency notes, there is one exception:

• One rupee note and coins are issued by the Government of India.
• However, they are circulated through RBI.

Conclusion: Therefore, the bank in India that has the sole authority to issue currency notes is the Reserve Bank of India (RBI).