Bank of issue means a bank that has the legal right to issue currency notes.
‘Bank of issue’ means a bank which has the legal right to issue currency notes.
Most of the central banks today enjoy complete monopoly of note issue.
There are two main reasons as to why the monopoly power of note issue is given to the central banks.
One reason is that it brings about uniformity in note circulation.
The second reason is that it gives a central bank some direct control over the money supply.
You know that currency notes in circulation are a part of the money supply.