Chapter III — Central Banking Functions

Section 22: Right to issue bank notes

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 22 confers on RBI the sole right to issue bank notes in India, subject to the Act's special provisions.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 22 in 2 minutes

Legal effectSection 22 confers on RBI the sole right to issue bank notes in India, subject to the Act's special provisions.

Operative ruleThe monopoly relates to bank-note issue and forms the statutory foundation for the Issue Department and note provisions that follow in Sections 23 to 29.

Connected lawThe section should be distinguished from coins/one-rupee notes issued under separate sovereign authority and from digital-bank-note provisions introduced through Section 22A.

File evidenceA currency-law analysis should first classify the instrument as an RBI bank note, coin, one-rupee note or another payment instrument before invoking Section 22.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Scope

Section 22 confers on RBI the sole right to issue bank notes in India, subject to the Act's special provisions.

Operative limb

The monopoly relates to bank-note issue and forms the statutory foundation for the Issue Department and note provisions that follow in Sections 23 to 29.

Legal boundary

The section should be distinguished from coins/one-rupee notes issued under separate sovereign authority and from digital-bank-note provisions introduced through Section 22A.

Worked practical example

Facts. A private token labelled 'digital rupee' does not become a bank note merely by branding; the legal issuer and statutory form must be traced to RBI/Government authority.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 22 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. The section should be distinguished from coins/one-rupee notes issued under separate sovereign authority and from digital-bank-note provisions introduced through Section 22A.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

Section 22 has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 22?

Right to issue bank notes: Section 22 confers on RBI the sole right to issue bank notes in India, subject to the Act's special provisions.

Which statutory limb should be checked first?

Scope - Section 22 confers on RBI the sole right to issue bank notes in India, subject to the Act's special provisions.

What is the next legal boundary?

Operative limb - The monopoly relates to bank-note issue and forms the statutory foundation for the Issue Department and note provisions that follow in Sections 23 to 29.

What record should support the conclusion?

Section 22 file evidence: A currency-law analysis should first classify the instrument as an RBI bank note, coin, one-rupee note or another payment instrument before invoking Section 22.

Primary sources

Source control for Section 22: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.