Question

Who is the sole authority to issue and manage currency in India?

• A. SBI
• B. RBI
• C. Government of India
• D. Finance Ministry

Hint:

Remember: Only the RBI can print currency notes — except for coins and one-rupee notes, which the government issues but the RBI circulates.

Answer 1

The Correct Option is B

The Reserve Bank of India (RBI) is the central banking institution of India and acts as the country’s sole authority for issuing and managing currency.
According to the RBI Act, 1934, the RBI has the exclusive right to issue banknotes in all denominations except the one-rupee note and coins, which are issued by the Government of India.
However, even these coins and one-rupee notes are put into circulation by the RBI.
The RBI ensures that the supply of currency is adequate, genuine, and secure through its printing presses and stringent control measures.
It also withdraws damaged or soiled notes and replaces them with new ones to maintain the integrity of the currency system.
State Bank of India (SBI) is a commercial bank and does not have the authority to issue currency.
The Finance Ministry formulates economic policy but does not directly issue or circulate currency.
Therefore, the correct answer is option (B) RBI — the sole authority to issue and manage currency in India.