10 Questions
Why did the Reserve Bank of India shift to higher denomination notes?
Smaller denominations involve high volume and low value, posing challenges in currency management.
Which department of the RBI needed reforms according to the text?
Issue Department
What was one of the limitations the Reserve Bank faced in printing new currency?
Lack of capacity in the existing printing presses.
What is a reason for the gradual shift towards higher denomination notes mentioned in the text?
Security and transport issues with smaller denominations.
What was one of the main aims of the Clean Note Policy mentioned in the text?
To introduce new security features in currency printing.
What is the purpose of the Currency Verification and Processing Systems (CVPS) mentioned in the text?
To sort currency notes into usable and non-usable categories.
Why did RBI face a severe supply constraint of currency in the 1990s?
Due to poor/low capacity of note printing.
Which subsidiary of RBI was responsible for setting up modern printing presses for banknotes?
Bharatiya Reserve Bank Notes Mudran Private Ltd. (BRBNMPL)
In which two Indian states were the modern printing presses for banknotes set up by BRBNMPL?
Karnataka and Maharashtra
What makes BRBNMPL unique in the world of banknote printing according to the text?
It was awarded the ISO 9001-2000 Certification.
Test your knowledge on the course material of Unit 2: Changing Role of Reserve Bank of India at St. Mira’s College for Girls, Pune. Explore topics such as Currency Management, Central Bank Independence, and Liquidity Management.
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