Banking Awareness Questions Set 99 (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, NABARD and other exams.

  1. Which of the following is not a legal tender in India currently?
    A) Rs 1000
    B) Re 1
    C) Rs 20
    D) Rs 2000
    View Answer
    Option A
    Explanation:

    Legal Tender is a coin or a banknote that is legally tenderable for discharge of debt or obligation.
    Every banknote issued by Reserve Bank of India (₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500 and ₹2000), unless withdrawn from circulation, shall be legal tender at any place in India in payment or on account for the amount expressed therein, and shall be guaranteed by the Central Government, subject to provisions of sub-section (2) Section 26 of RBI Act, 1934. ₹1 notes issued by Government of India are also Legal Tender. ₹500 and ₹1000 banknotes of Mahatma Gandhi series issued up to November 08, 2016 have ceased to be Legal Tender with effect from the midnight of November 8, 2016.
  2. Under which section of RBI Act, Reserve Bank has the sole right to issue banknotes in India?
    A) 26
    B) 21
    C) 22
    D) 27
    View Answer
    Option C
    Explanation:

    In terms of Section 22 of the Act, Reserve Bank has the sole right to issue banknotes in India. Section 25 states that the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by the Central Board of RBI.
  3. What can be the highest denominational value of a banknote in India?
    A) Rs 4,000
    B) Rs 15,000
    C) Rs 5,000
    D) Rs 10,000
    View Answer
    Option D
    Explanation:

    In terms of Section 24 of the Reserve Bank of India Act, 1934, bank notes shall be of the denominational values of two rupees, five rupees, ten rupees, twenty rupees, fifty rupees, one hundred rupees, five hundred rupees, one thousand rupees, five thousand rupees and ten thousand rupees or of such other denominational values, not exceeding ten thousand rupees.
  4. What was the highest denomination note ever printed?
    A) Rs 5,000
    B) Rs 6,000
    C) Rs 8,000
    D) Rs 10,000
    View Answer
    Option D
  5. When were the Rs 10,000 banknotes last demonetized?
    A) 1982
    B) 1946
    C) 1978
    D) 1951
    View Answer
    Option C
    Explanation:

    The highest denomination note ever printed by the Reserve Bank of India was the ₹10000 note in 1938 which was demonetized in January 1946. The ₹10000 was again introduced in 1954. These notes were demonetized in 1978.
  6. How many languages appear in the language panel of Indian banknotes?
    A) 15
    B) 17
    C) 21
    D) 14
    View Answer
    Option A
    Explanation:

    Fifteen languages are appearing in the language panel of banknotes in addition to Hindi prominently displayed in the centre of the note and English on the reverse of the banknote.
  7. Who decides on the figure to be printed on a new banknote?
    A) Finance Ministry
    B) Reserve Bank of India
    C) Comptroller and Auditor General of India
    D) Central Govt.
    View Answer
    Option D
    Explanation:

    In terms of Section 25 of the RBI Act, the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by Central Board.
  8. How many denomination banknotes have ever been demonetized in India?
    A) 3
    B) 4
    C) 5
    D) 6
    View Answer
    Option B
    Explanation:

    ₹500, ₹1000 and ₹10000 banknotes, which were then in circulation were demonetized in January 1946. The higher denomination banknotes in ₹1000, ₹5000 and ₹10000 were reintroduced in the year 1954, and these banknotes (₹1000, ₹5000 and ₹10000) were again demonetized in January 1978.

    Recently, banknotes in the denomination of ₹500 and ₹1000 issued under the Mahatma Gandhi Series have been withdrawn from circulation with effect from the midnight of November 08, 2016 and are, therefore, no more legal tender.

  9. MANI is a mobile application launched by the Reserve Bank for aiding visually impaired persons to identify the denomination of Indian Banknotes. What does A stands for in MANI?
    A) Applied
    B) Authenticate
    C) Aided
    D) Alias
    View Answer
    Option C
    Explanation:

    Mobile Aided Note Identifier (MANI) is a mobile application launched by the Reserve Bank for aiding visually impaired persons to identify the denomination of Indian Banknotes.
  10. What is the maximum value of coin that can be issued under The Coinage Act, 2011?
    A) Rs 100
    B) Rs 500
    C) Rs 1000
    D) Rs 5000
    View Answer
    Option C
    Explanation:

    Coins can be issued up to the denomination of ₹1000 under The Coinage Act, 2011.

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