Who signs One rupee note in India?
[B]RBI Deputy Governor
Under Section 22 of the Reserve Bank of India Act, RBI has sole right to issue currency notes of various denominations except one rupee notes. The One Rupee note is issued by Ministry of Finance and it bears the signatures of Finance Secretary, while other notes bear the signature of Governor RBI.
First printing press for bank notes in India was established at __?
Currency Note Press (CNP), Nasik, Maharashtra was established in 1928. It was the first printing press for bank notes in India.
A fifty paisa coin in India is a legal tender till what amount?
One Rupee Note and One Rupee coins are legal tenders for unlimited amounts. 50 Paisa coins are legal tender for any sum not above Rs. 10. The coins of smaller than 50 paisa value are legal tenders of a sum below Re. 1.
In which denomination, star series notes in India are not issued?
The Star series notes are currently issued in Rs. 10, 20, 50 and Rs. 100. These notes are issued to replace the defected printed notes at the printing press. They have an additional character of a star and the bundles are NOT in series. Rest all the features are same.
In how many languages, the amount of a banknote is written on it ?
The amount of a banknote is written on it in 17 languages out of 22 official languages (+ English) of India. The languages are Hindi, English, Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu.
RBI provides Ways and Means Advances (WMA) to __:
Whenever there is a temporary mismatch in the cash flow of the receipts and payments of the State Governments, RBI provides them Ways and Means Advances (WMA). This also comes under debt management works of RBI.
Which of the following is not a function / power of Reserve Bank of India?
[A]To assume the responsibility of meeting directly or indirectly all reasonable demands for accommodation
[B]To hold cash reserves of the commercial banks and make available financial accommodation to them
[C]To assume responsibility of all banking operations of the government
[D]To assume the responsibility of statistical analysis of data related to macro economy of India
To assume the responsibility of statistical analysis of data related to macro economy of India
Statistical analysis of data related to macro economy of India is a function of Central statistical organization and not of RBI
What will be the impact on the cash reserves of commercial banks if RBI conducts a sale of securities ?
[D]Increase or decrease
Which among the following statement gives the most correct definition of “Lender of Last Resort”?
[A]If a person or firm which is eligible to get a loan, does not get it from any commercial bank, may approach to Reserve Bank of India for loan.
[B]If the state governments are in crisis and need money for short term , they can approach RBI for this purpose
[C]If a commercial bank is in crisis, it may place its reasonable demand for accommodation to Reserve Bank of India
[D]Whenever the government declares a debt relief, the RBI will have to bear the brunt of it.
If a commercial bank is in crisis, it may place its reasonable demand for accommodation to Reserve Bank of India
The banks can borrow from the RBI by keeping eligible securities as collateral or any other arrangement and at the time of need or crisis, they approach RBI for financial help. Thus RBI works as Lender of the Last Resort (LORL) for banks.
RBI takes certain steps to curb the menace of Inflation. In this context, which among the following will not help RBI in controlling the inflation in the country?
[A]An increase in the Bank Rate
[B]An increase in the Reserve Ratio Requirements
[C]A purchase of securities in the open market
[D]Increasing the Repo Rate
A purchase of securities in the open market
When RBI purchases the securities, RBI is effectively releasing liquidity in the market. Increased liquidity will increase inflation.