Q. Consider the following statements regarding the Currency Chests:
1.These are branches of selected banks authorised by the RBI to stock rupee notes and coins.
2.The money present in the currency chest belongs to the respective banks.
Which of the statements given above is/are correct?
Answer: A
Notes:
- Statement 1 is correct: Currency chests are branches of selected banks authorised by the RBI to stock rupee notes and coins. The responsibility for managing the currency in circulation is vested in the RBI. The central bank advises the Centre on the number of notes to be printed, the currency denominations, security features and so on.
- Statement 2 is incorrect: These chests are usually situated on the premises of different banks but administrated by the RBI. Representatives of the RBI inspect currency chests time-to-time, and update their senior officers about it. The money present in the currency chest belongs to the RBI and the money kept in the strong room outside the currency chest belongs to the bank.
