Q. As we know that RBI has two departments Issue Department and Banking Department. Which among them is responsible for maintaining a Minimum reserve system against printing of currency notes?
Answer: Issue Department
Notes: The correct answer is the Issue Department. The Reserve Bank of India (RBI) operates under a Minimum Reserve System, which requires the Issue Department to maintain a minimum reserve of gold and foreign securities against the currency notes it issues. This system was adopted in 1957 to ensure that the currency issued is backed by adequate reserves, promoting stability in the economy. The Banking Department, on the other hand, handles banking operations and does not directly manage currency issuance.