part 4 Flashcards
29.
Bank exempt from stamp duty on bank notes.
30.
Powers of Central Government to supersede Central Board.
If the Central Government believes that the Bank has not fulfilled its obligations under the applicable Act, it can issue a notification in the _________________ to declare the Central Board (governing body of the Bank) to be superseded.
Gazette of India
If the Central Government takes the action to supersede the Central Board, it is required to present a detailed report to Parliament. The report must be submitted to Parliament as soon as possible, but in any case within ___________ of the notification being issued.
three months
31.
Issue of demand bills and notes.
________________ can draw, accept, make, or issue bills of exchange, hundis, promissory notes, or engagements for payment of money payable to bearer on demand.
Bank or the Central Government (as expressly authorized by the Act)
______________- payable to bearer on demand or otherwise can be drawn on a person’s account with a banker, shroff, or agents.
Cheques or drafts (including hundis)
Even under the ____________________ no person in India, other than the Bank or the Central Government (as authorized by this Act), is allowed to issue or make any promissory note that is expressed to be payable to the bearer of the instrument.
Negotiable Instruments Act, 1881,
The Central Government is allowed to authorize ______________ to issue electoral bonds.
scheduled banks
33.
Assets of the Issue Department.
assets of the Issue Department must include:
Gold coin
Gold bullion (uncoined gold in bulk form)
Foreign securities (investments or instruments held in foreign currencies or foreign institutions)
Rupee coin
Rupee securities (government bonds or other financial instruments denominated in rupees)
The total value of these assets must always be at least equal to
the total of the liabilities of the Issue Department
The combined value of the following assets held by the Issue Department must not be less than
200 crore rupees
value of gold alone (including both gold coin and gold bullion) must not be less than _____________ at any time.
115 crore rupees
The remainder of the assets (after meeting the minimum requirements for gold and foreign securities) shall consist of:
Rupee Coin: Indian currency in the form of coins.
Government of India Rupee Securities: These are bonds or debt instruments issued by the Government of India, which may have any maturity (short-term or long-term).
Promissory Notes from the National Bank: These are promissory notes issued by the National Bank (likely the National Bank for Agriculture and Rural Development, NABARD, or similar institutions), specifically for loans or advances made under clause (4E) of section 17 of the Act.
Bills of Exchange and Promissory Notes Payable in India: These are short-term financial instruments (bills of exchange and promissory notes) that are payable in India. They must meet the eligibility criteria for purchase by the Bank, which are outlined in the following sections:
Sub-clause (a), (b), and (bb) of clause (2) of section 17: These clauses define the kinds of bills and promissory notes that the Bank can purchase.
Clause (1) of section 18: This specifies further rules on the Bank’s ability to purchase or discount bills of exchange and promissory notes.
Rupee coins are to be valued at their
face value (i.e., their nominal or stated value).
Securities (such as government bonds or other financial instruments) are to be valued at
rates not exceeding the market rates at the time.
_________________ of the total value of the gold coin and gold bullion held as assets must be physically located within India.
Seventeen-twentieths (or 85%)
Gold that belongs to the Bank but is temporarily held in
Another bank,
A mint (where coins are produced),
A treasury,
Or is in transit (being transported),
The foreign securities that may be held as part of the assets must be payable in the currency of a ________________________
foreign country that is a member of the International Monetary Fund (IMF).
Balances and Securities:
Balances with the central bank or principal currency authority of a foreign country that is an IMF member.
Other balances or securities in foreign currency maintained with or issued by:
The International Monetary Fund (IMF)
The International Bank for Reconstruction and Development (IBRD) (World Bank)
The International Development Association (IDA)
The International Finance Corporation (IFC)
The Asian Development Bank (ADB)
The Bank for International Settlements (BIS)
Any banking or financial institution approved by the Central Government.
eligible Balances and Securities must be repayable within ________________ years.
ten