Banking Awareness Questions Set 98 (Indian Currency)

Banking Awareness Questions on Indian Currency for upcoming bank and insurance exams IPPB, SBI PO, IBPS PO/Clerk, RRB PO/Clerk, RBI, LIC, BoB and other exams.

  1. Under which section of the RBI Act, the coins are used for circulation?
    A) Section 35
    B) Section 38
    C) Section 24
    D) Section 27
    View Answer
    Option B
    Explanation:

    The coins are issued for circulation only through the Reserve Bank in terms of Section 38 of the RBI Act.
  2. In India, coins are minted in four mints owned by SPMCIL. What does P stand for in SPMCIL?
    A) Produced
    B) Public
    C) Press
    D) Printing
    View Answer
    Option D
    Explanation:

    SPMCIL stands for Security Printing and Minting Corporation of India Ltd. SPMCIL is under the Govt. of India.
  3. Where are the currency presses of SPMCIL (Security Printing and Minting Corporation of India Ltd) located?
    A) Dewas and Coimbatore
    B) Mysuru and Nasik
    C) Nasik and Dewas
    D) Mysuru and Bengaluru
    View Answer
    Option C
    Explanation:

    The currency presses of SPMCIL are at Nasik (Western India) and Dewas (Central India).
  4. Coins are minted in four mints owned by SPMCIL. Which of the following place is not among those four places?
    A) Bengaluru
    B) Mumbai
    C) Noida
    D) Kolkata
    View Answer
    Option A
    Explanation:

    Coins are minted in four mints owned by SPMCIL. The mints are located at Mumbai, Hyderabad, Kolkata and NOIDA. The coins are issued for circulation only through the Reserve Bank in terms of Section 38 of the RBI Act.
  5. BRBNMPL is a wholly owned subsidiary of RBI. What does N stand for in BRBNMPL?
    A) National
    B) Note
    C) Nomination
    D) Number
    View Answer
    Option B
    Explanation:

    Bharatiya Reserve Bank Note Mudran Private Ltd. (BRBNMPL)
  6. Where are the currency presses of BRBNMPL (Bharatiya Reserve Bank Note Mudran Private Ltd.) located?
    A) Mysuru and Salboni
    B) Dewas and Hyderabad
    C) Bengaluru and Nasik
    D) Jaipur and Gandhinagar
    View Answer
    Option A
    Explanation:

    Bank notes are printed at four currency presses, two of which are owned by the Government of India through its Corporation, Security Printing and Minting Corporation of India Ltd. (SPMCIL) and two are owned by the Reserve Bank, through its wholly owned subsidiary, Bharatiya Reserve Bank Note Mudran Private Ltd. (BRBNMPL). The currency presses of SPMCIL are at Nasik (Western India) and Dewas (Central India). The two presses of BRBNMPL are at Mysuru (Southern India) and Salboni (Eastern India).
    Coins are minted in four mints owned by SPMCIL. The mints are located at Mumbai, Hyderabad, Kolkata and NOIDA. The coins are issued for circulation only through the Reserve Bank in terms of Section 38 of the RBI Act.
  7. As on March 31, 2020, how many currency chests are there in the country?
    A) 3426
    B) 3651
    C) 3245
    D) 3367
    View Answer
    Option D
    Explanation:

    To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorised select scheduled banks to establish currency chests. These are storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank for distribution to bank branches in their area of operation. As on March 31, 2020, there were 3367 currency chests. The currency chests are expected to distribute banknotes and rupee coins to other bank branches in their area of operation.
  8. As on March 31, 2020, how many small coin deposts are there in the country?
    A) 2782
    B) 2367
    C) 2561
    D) 2678
    View Answer
    Option A
    Explanation:

    Some banks are authorised to establish Small Coin Depots to stock and distribute small coins i.e. coins of value below Rupee One to bank branches in their area of operation. As on March 31, 2020, there were 2782 small coin depots.
  9. The Government of India is responsible for the designing and minting of coins in various denominations as per the Coinage Act, _____.
    A) 2010
    B) 2011
    C) 2012
    D) 2013
    View Answer
    Option B
    Explanation:

    The Government of India is responsible for the designing and minting of coins in various denominations as per the Coinage Act, 2011.
    RBI prints the currency notes as per the provisions of the Reserve Bank of India Act, 1934 while the coins in India are minted as per The Coinage Act, 2011.
  10. Which of the following denomination banknotes are not being issued by RBI currently?
    A) Rs 200
    B) Rs 100
    C) Rs 5
    D) Rs 20
    View Answer
    Option C
    Explanation:

    Banknotes in India are currently being issued in the denomination of ₹10, ₹20, ₹50, ₹100 ₹200, ₹500, and ₹2000. These notes are called banknotes as they are issued by the Reserve Bank of India. The printing of notes in the denominations of ₹2 and ₹5 has been discontinued and these denominations have been coinised as the cost of printing and servicing these banknotes was not commensurate with their life. However, such banknotes issued earlier can still be found in circulation and these banknotes continue to be legal tender. ₹1 notes are issued by the Government of India from time to time and such notes including those issued in the past also continue to be legal tender for transactions.

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