What monetary system does India follow?
(a) India has adopted a representative paper currency or the managed currency standard.
(b) The monetary standard is synonymous with the standard money adopted. Paper currency in India is the unlimited legal tender i.e. it is used to settle debts and make payments against all transactions.
(c) RBI (The Reserve Bank of India) issues all currency notes and coins except one rupee notes and coins which are issued by the ministry of finance.
(d) The system governing note issues the minimum reserve system viz. certain quantity of gold is kept in reserve.
