Module: General Practice
Q3: Consider the following statements:
Assertion (A) - A person is entitled as a right to recover from the Reserve Bank of India the value of any lost, stolen, or mutilated banknote.
Reason (R) - The Reserve Bank of India may, as a matter of grace, prescribe circumstances and conditions under which the value of mutilated or imperfect notes may be refunded.
Reason (R) - The Reserve Bank of India may, as a matter of grace, prescribe circumstances and conditions under which the value of mutilated or imperfect notes may be refunded.
✅ Correct Answer: D
Assertion (A) is false because, under RBI Note Exchange Rules and Section 28 of the RBI Act, recovery is not a legal 'right'. Reason (R) is true; refunds are a 'matter of grace' within the RBI Currency Management Policy framework, which guides the RBI Note Exchange Rules.