What is Minimum Reserve System-1

•Under the Minimum Reserve System, the RBI has to keep a minimum reserve of Rs 200 crore comprising of gold coin and gold bullion and foreign currencies. Out of the total Rs 200 crores, Rs115 crore should be in the form of gold coins or gold bullion.
•The purpose of shifting to MRS was to expand money supply to meet the needs of increasing transactions in the economy.