According to the historical record, when did banks in India start issuing paper currency in the modern sense?
Question and options
According to the historical record, when did banks in India start issuing paper currency in the modern sense?
Early twentieth century
Late eighteenth century
Late nineteenth century
Late seventeenth century
Answer and explanation
Correct answer: B - Late eighteenth century
The RBI dates paper money in its modern form in India to the late eighteenth century, when private and semi-official banks such as the Bank of Hindostan, the General Bank in Bengal and Bihar and the Bengal Bank issued notes. Government note issue came later, with the monopoly conferred by the Paper Currency Act, 1861.
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