In the present era, one rupee is the smallest currency in note form. RBI does not issue one rupee note. It is issued by the Government of India. This is the reason why the one rupee note does not have the signature of the RBI Governor. The one rupee note bears the signature of the Finance Secretary.

The Constitution of India establishes a federal system of government. It contains all the usual features of a federation Viz., two government, Division of powers, written constitution, Supremacy of constitution, Independent judiciary and Bicameralism. Article 1 says that India is a union of states which implies two things: first, Indian federation is not the result of an agreement by the states and second, No state has the right to secede from the federation.