Choose the correct statements ndash 1 Denomination value of bank notes is specified b...........

Professional Legal Knowledge RBI Act

Choose the correct statements –

1.Denomination value of bank notes is specified by the Government of India on the recommendation of central board.

2.The Central Government may, on the recommendation of the Central Board, direct the non-issue or the discontinuance of issue of bank notes of denominational values as it may specify.

only 1

only 2

both 1 and 2

neither 1 nor 2

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Explanation:

The denominational values of Bank notes are two rupees, five rupees, ten rupees, twenty rupees, fifty rupees, one hundred rupees, five hundred rupees, one thousand rupees, five thousand rupees and ten thousand rupees and this is specified by the Central Government on recommendation of central board.

It is provided under section 24 of RBI act.

24. Denominations of notes.
(1) Subject to the provisions of sub-section (2), bank notes shall be of the denominational values of two rupees, five rupees, ten rupees, twenty rupees, fifty rupees, one hundred rupees, five hundred rupees, one thousand rupees, five thousand rupees and ten thousand rupees or of such other denominational values, not exceeding ten thousand rupees, as the Central Government may, on the recommendation of the Central Board, specify in this behalf.
(2) The Central Government may, on the recommendation of the Central Board, direct the non-issue or the discontinuance of issue of bank notes of such denominational values as it may specify in this behalf.