Who issues currency notes in India?

The correct answer is - RBI

Key Points

• Reserve Bank of India (RBI)
  • The Reserve Bank of India (RBI) is India's central banking institution, which controls the issuance and supply of the Indian rupee.
  • It commenced operations on April 1, 1935, during the British Raj in accordance with the provisions of the Reserve Bank of India Act, 1934.
  • The RBI is responsible for the design, production, and overall management of the nation's currency, with the goal of ensuring adequate supply of clean and genuine notes.
  • The RBI also plays a crucial role in the development strategy of the Government of India.

Additional Information

• Commercial Banks
  • Commercial banks are financial institutions that accept deposits, offer checking account services, and make various loans.
  • They do not have the authority to issue currency notes.
• Government of India
  • The Government of India can influence monetary policy and regulation but does not directly issue currency notes.
  • The RBI acts as the issuer on behalf of the Government of India.
• State Bank of India (SBI)
  • State Bank of India (SBI) is a public sector banking and financial services statutory body headquartered in Mumbai, Maharashtra.
  • While SBI is the largest commercial bank in India, it does not have the authority to issue currency notes.