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Which level of government can issue a new currency in the country?

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a

Local

b

State

c

Central

d

None of the above

answer is C.

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Detailed Solution

The central level of government can issue a new currency in the country.
The Union List, which includes topics like foreign affairs, defence, banking and currency, atomic energy, space exploration, information, broadcasting, etc., is the sole domain of the central government. The Reserve Bank is the only entity authorised to print banknotes in India under Section 22 of the Act. According to Section 25, the Central Government would approve the design, shape, and substance of banknotes after considering the proposals the Central Board of the RBI gave.

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