Explain the ‘bank of issue’ function of central bank.
Explain the "Bank of Issue function" of the central bank
Function of Central Bank– Bank of Issue:-
The central bank of a country has an exclusive right of issuing notes. Under the original Act, there was provision for issuing currency notes according to the proportional reserve system. In India, the RBI can print or issue any volume of currency or notes by keeping a gold reserve worth Rs 115 crore and foreign exchange worth Rs 85 crore. These currencies are called legal tender money.