Which is the best method of note issue and why? In Indian monetary system
Answer (1)
3rd Sep, 2019
Hello Vikas, Greetings!
The central bank is the bank of issue. It has the monopoly of note issue. In india note is printed by RBI( central bank of india) on the basis of MRS( Minimum Reserve System).This system was adopted by RBI in 1956.
Under this system the central bank is required to keep Rs 115 crore in gold and Rs 85 crore in foreign securities. There is no limit of issue of note after keeping this minimum amount of 200 cr in gold and foreign reserve.
Thank you, hope this helps.
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