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The right to issue banknotes is one of the Reserve Bank's core central banking functions. Under which specific section of the Reserve Bank of India Act, 1934 does this power derive?
Answer & Solution
Correct answer: B.
1. The lesson identifies the source of the RBI's note-issue power.
2. Section 22 of the RBI Act, 1934 confers the necessary statutory powers.
3. Section 24 deals with the maximum denomination; Section 26 with legal tender character.
4. Section 30 is about Central Government power to supersede the Central Board.
_Source: ICSI CS Executive Paper 7 (Economic, Business and Commercial Laws) — Lesson 1: Reserve Bank of India Act, 1934, pp. 8-21._
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