For issuing / printing currency notes, the RBI has adopted a system -
A)Minimum Reserve System
B)Fixed fiduciary system.
C)Maximum limit system
D)Proportional reserve system.

Question

Quizplus · Accepted Answer

The Reserve Bank of India (RBI) has adopted the Minimum Reserve System for the issuance of currency notes. Under this system, the RBI is required to maintain a minimum reserve of gold and foreign exchange, but beyond that, it has no fixed ratio for the amount of currency it can issue against such reserves. This system provides flexibility in currency management.

For Issuing / Printing Currency Notes, the RBI Has Adopted