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WBCS Main Examination 2023 — Paper V: Indian Constitution and Economy · Question 126 of 200

Q126
Indian EconomyMoney, Banking & Financial Institutions
The Reserve Bank of India issues currency notes maintaining
  1. a.a minimum reserve of gold.
  2. b.a minimum reserve of rupee coins and foreign exchanges.
  3. c.a minimum reserve of gold and foreign exchanges.
  4. d.a minimum reserve of bills of exchange and promissory notes payable in India.

Answer: (C) a minimum reserve of gold and foreign exchanges.

Since 1957 the RBI has issued notes under the Minimum Reserve System, keeping a minimum of ₹200 crore in gold and foreign exchange, of which at least ₹115 crore must be gold. It is not a gold-only reserve, and rupee coins or bills of exchange are not part of the minimum reserve.

Q125 Whole paperQ127