Chapter III CENTRAL BANKING FUNCTIONS

Question 1

Section 20

Answer 1

Obligation of the Bank to transact Government business.

Question 2

Section 21

Answer 2

Bank to have the right to transact Government business in India

Question 3

Section 21A

Answer 3

Bank to transact Government business of States on agreement.

Question 4

Section 21B

Answer 4

Effect of agreements made between the Bank and certain States before the 1st November, 1956.

Question 5

Section 22

Answer 5

Right to issue Bank notes

Question 6

Section 23

Answer 6

Issue Department

Question 7

Section 24

Answer 7

Denominations of notes

Question 8

Section 25

Answer 8

Form of Bank notes

Question 9

Section 26

Answer 9

Legal tender character of notes

Question 10

Section 26A

Answer 10

Certain bank notes to cease to be legal tender

Question 11

Section 27

Answer 11

Re-issue of notes

Question 12

Section 28

Answer 12

Recovery of notes lost, stolen, mutilated or imperfect.

Question 13

Section 28A

Answer 13

Issue of special bank notes and special one rupee notes in certain cases.

Question 14

Section 22A

Answer 14

Non-applicability of certain provisions to digital form of bank notes.

Question 15

Section 29

Answer 15

Bank exempt from stamp duty on bank notes

Question 16

Section 30

Answer 16

Powers of Central Government to supersede Central Board.

Question 17

Section 31

Answer 17

Issue of demand bills and notes.

Question 18

Section 33

Answer 18

Assets of the Issue Department.

Question 19

Section 34

Answer 19

Liabilities of the Issue Department.

Question 20

Section 37

Answer 20

Suspension of assets requirements as to foreign securities.

Question 21

Section 38

Answer 21

Obligations of Government and the Bank in respect of rupee coin.

Question 22

Section 22A

Answer 22

Non-applicability of certain provisions to digital form of bank notes

Question 23

Section 39

Answer 23

Obligation to supply different forms of currency.

Question 24

Section 40

Answer 24

Transactions in foreign exchange.

Question 25

Section 42

Answer 25

Cash reserves of scheduled banks to be kept with the Bank.

Question 26

Section 43

Answer 26

Publication of consolidated statement by the Bank.

Question 27

Section 43A

Answer 27

Protection of action taken in good faith.

Question 28

Section 45

Answer 28

Appointment of Agents.