Section 22 - Right to issue bank notes, Section 23 - Issue
Department: RBI Act 1934
What is the Right to issue bank notes? Which is Issue Department?
Section 22 and 23 of
Reserve Bank of India Act 1934
Section 22 of RBI Act 1934 : "Right to issue bank notes"
(1) The Bank shall have the sole right to issue
bank notes in India and may, for a period which
shall be fixed by the Central Government on the
recommendation of the Central Board, issue currency
notes of the Government of India, supplied to it by
the Central Government, and the provisions of this
Act applicable to bank notes shall, unless a
contrary intention appears, apply to all currency
notes of the Government of India issued either by
the Central Government or by the Bank in like manner
as if such currency notes were bank notes, and
references in this Act to bank notes shall be
(2) On and from the date on which this Chapter comes into
force the Central Government shall not issue any currency notes.
Section 23 of RBI Act 1934: "Issue Department"
(1) The issue of bank notes shall be conducted by the Bank in
an Issue Department which shall be separated and kept wholly
distinct from the Banking Department, and the assets of the
Issue Department shall not be subject to any liability other
than the liabilities of the Issue Department as hereinafter
defined in section 34.
(2) The Issue Department shall not
issue bank notes to the Banking Department or to any other
person except in exchange for other bank notes or for such coin,
bullion or securities as are permitted by this Act to form part
of the Reserve.