Yes, I agree to this statement.
Reason : Central bank of India is Reserve Bank of India has the sole right of issuing notes or paper currency to the public RBI issues currency notes of all denomination except the one note. The one rupee note and coins of all denominations are issued by the Ministry of Finance of Govt. of India. However their distribution is undertaken by RBI. The central bank follow certain principles while issuing note. Earlier it was full backing in terms of gold, however, now it is based on Minimum Reserve System of note issue.
The RBI maintains a minimum reserve of Rs. 200 crores, consisting of Rs. 115 crores in gold and the remaining Rs. 85 crores in govt. securities.
