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GOVIND PODDAR

GOVIND PODDAR (Querist)

16 January 2014 CAN ANYONE TELL, WHY RS 1 NOTE IS ISSUED BY GOVERNMENT OF INDIA AND NOT BY RBI....?

AVTAR SINGH

AVTAR SINGH (Expert)

16 January 2014 Reserve Bank Of India was established in 1935, and was nationalised in 1949. Prior to that all notes were issued on behalf of CROWN by Finance Ministry, the ultimate monetary authority for Indian Currency. subsequent to delegating the currency issuing function to RBI, all higher denomination notes were issued by RBI. Only as a matter of convention the one rupee note continued to be signed by Finance Secretary. Probably prior to 1949 one rupee note was the highest denomination note in circulation.

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Nikhil Kaushik

Nikhil Kaushik (Expert)

17 January 2014 in addition to nice explanation by Avtar, you may also read this to further enrich your knowledge of history of currency notes in relation to RBI.

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