Q. With reference to RBI, many a times we read in newspapers about "currency chests". Which of the following is / are functions of Currency Chests? Currency Printing Exchange of soiled currency notes Currency Distribution Select the correct option from the codes given below:
Answer: 2 & 3
Notes: Distribution of notes and coins throughout the country is done through designated bank branches, called chests. Chest is a receptacle in a commercial bank to store notes and coins on behalf of the Reserve Bank. Deposit into chest leads to credit of the commercial bank’s account and withdrawal, debit. The major functions of the currency chests are:

1. To meet currency requirement of public
2. To withdraw unfit notes
3. To provide exchange facility from one denomination to another
4. To make payment requirement of the Government
5. To exchange the mutilated notes
6. To avoid frequent movement of cash

Apart from having its own chests at certain places, RBI also has arrangements with other banks which are entrusted with custody of the currency notes and coins for the same purpose.

0

Above question is part of 10000+ MCQs for UPSC (Prelims) Paper-1 course in GKToday Android app.