Ans. Meaning: - The central bank is the apex bank in the
country. It enjoys the apex position in the country’s monetary and banking
structure. It regulates and monitors the banking and monetary system in the
country.
Issue
of Currency Notes: -The
central bank has the authority to issue currency notes. The RBI enjoys the
monopoly of note issue. The RBI has been authorised by the Government of India
to issue notes of all denominations except One Rupee note (which at present is
rarely in circulation) the one rupee note is directly issued by the government
of India.
