Read the following statements carefully. Write True/False with the reasons: The Commercial Bank has the currency issue authority. CRR and SLR work opposite to each other. Repo Rate is the rate of interest charged by the

False: Commercial banks do not have the authority to issue currency in India. The Reserve Bank of India (Central Bank of our country) is the sole currency issuing authority in the Country in terms of powers vested in it through Section 22 of the RBI Act, 1934. It has the exclusive right of currency issuing. False: CRR and SLR are complimentary to each other. A rise in these ratios curbs the creation of credit and vice versa. It is a statutory requirement and default on adherence to CRR/SLR requirements attracts penalty. Banks do not get interest on CRR (balance maintained in current account with RBI) but interest is earned on securities approved for the purpose of SLR (Investments of Bank in RBI approved securities from time to time). False: Repo rate is that rate at which the RBI (Central bank of our country) offers short term loans to commercial Banks. False: The Reserve Bank of India (Central Bank of our country) controls the money supply in the economy. The commercial banks only contribute to the money supply by way of credit creation. True: Central Bank provides loans to a commercial banks when the latter fail to get financial accommodation from anywhere against approved securities. True: Under section 22 of the Banking Regulation Act, 1949, Reserve Bank of India grants licence to a Banking Company.