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The Reserve Bank of India issues currency notes under
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- fixed fiduciary system
- maximum fidciuary system
- minimum reserve system
- proportional reserve system
- fixed fiduciary system
Correct Option: C
Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank notes of all denominations. The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The system as it exists today is known as the minimum reserve system.
