With reference to functions of RBI, which of the following is / are correct statements?

  1. Reserve Bank of India has the sole right to  issue Bank notes of all denominations except Re.1
  2. RBI is bank of all banks in India

Select the correct option from the codes given below:

Answer: [C] Both 1 & 2

Both are correct statements. Government of India has all the powers to print currency notes of Re. 1, while RBI has authority to issue bank notes of denominational values of Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000. Government of India also has the sole right to mint coins of all denominations.

This question is a part of GKToday's Integrated IAS General Studies Module