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Section 24 of the Reserve Bank of India Act, 1934 places a ceiling on the maximum denomination of banknotes that may be issued. What is that ceiling?
Answer & Solution
Correct answer: C.
1. Section 24 of the RBI Act caps the maximum denomination.
2. Notes in denominations higher than ten thousand rupees cannot be issued.
3. The Central Government may, on RBI recommendation, also direct non-issue of any denomination notified.
4. The other figures cited are not the statutory cap under Section 24.
_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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