Section 3 of RBI Act : Section 3: Establishment And Incorporation Of Reserve Bank

Explanation using Example

Imagine the government of India decides to introduce a new series of banknotes. According to Section 3 of The Reserve Bank of India Act, 1934, the Reserve Bank of India (RBI) would be responsible for managing the issuance and circulation of these new banknotes. As a body corporate, the RBI would use its common seal to authenticate the new currency and, if necessary, could engage in legal proceedings (sue or be sued) under its own name in relation to the management of this currency.