Consider the following statements:

The Reserve Bank of India Act, 1934, gives RBI the “sole right” to issue banknotes and make changes in the design and form of banknotes.

Currency note printing presses in Nasik, Dewas, Mysore and Salboni are owned by the RBI.

Which of the statements given above is/are correct?

Question

Changes in the design and form of bank notes and coins are decided by the Reserve Bank of India (RBI) and the central government. Any change in design of a currency note has to be approved by the RBI’s Central Board and the central government. Changes in the design of coins are the prerogative of the central government.
Section 22 of The Reserve Bank of India Act, 1934, gives RBI the “sole right” to issue banknotes in India.
The Coinage Act, 2011 gives the central government the power to design and mint coins in various denominations. Coins are minted in four mints owned by the Government of India in Mumbai, Hyderabad, Kolkata and Noida.
Two of India’s currency note printing presses (in Nasik and Dewas) are owned by the Government of India; two others (in Mysore and Salboni) are owned by the RBI through its wholly owned subsidiary, Bharatiya Reserve Bank Note Mudran Ltd (BRBNML).
Notes of Rs 2 and Rs 5 are no longer issued; however, older notes of these denominations, if still in circulation, continue to be legal tender. Re 1 notes, if in circulation, are also legal tender.

GKToday Admin · Accepted Answer

Neither 1 nor 2

Changes in the design and form of bank notes and coins are decided by the Reserve Bank of India (RBI) and the central government. Any change in design of a currency note has to be approved by the RBI’s Central Board and the central government. Changes in the design of coins are the prerogative of the central government.
Section 22 of The Reserve Bank of India Act, 1934, gives RBI the “sole right” to issue banknotes in India.
The Coinage Act, 2011 gives the central government the power to design and mint coins in various denominations. Coins are minted in four mints owned by the Government of India in Mumbai, Hyderabad, Kolkata and Noida.
Two of India’s currency note printing presses (in Nasik and Dewas) are owned by the Government of India; two others (in Mysore and Salboni) are owned by the RBI through its wholly owned subsidiary, Bharatiya Reserve Bank Note Mudran Ltd (BRBNML).
Notes of Rs 2 and Rs 5 are no longer issued; however, older notes of these denominations, if still in circulation, continue to be legal tender. Re 1 notes, if in circulation, are also legal tender.

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