Q. In which year, Paper Currency Act was enacted by British Government of India?
Answer: 1861
Notes: The Paper Currency Act was enacted in 1861 by the British Government of India. The act gave the government the sole right to create and issue paper currency. The act was effective on March 1, 1862. The Paper Currency Department was allowed to issue notes for 10 rupees and up. The act divested banks of the right to issue notes. However, the Presidency Banks were given the right to manage the note issues of the Government of India. The Banks of Bengal, Madras, and Bombay were also able to enter into arrangements with the government to manage the issue, payment, and exchange of government currency notes.