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Posted by on Nov 27, 2015 in Banking |

CURRENCY of INDIA: TERMS & FACTS

RBI has right to issue all type of currency notes except 1 rupee note which comes under right of Ministry of Finance. The printing of ₹ 1 discontinued due to high cost, but recently govt has again started printing of ₹ 1 note and it contains signature of Finance Secretary Rajiv Mehrishi.

Similarly RBI discontinued printing of currency ₹ 2 and ₹ 5 from 1995 due to high cost and less average life.

BANK NOTES: RBI can issue up to 5000 and 10000, or any other denomination that the Central Government may specify.

COINS: RBI can issue coins up to the denomination of Rs 1000 under Coinage Act, 2011.

Languages: There are total fifteen languages appeared on a banknote.

 

CURRENCY CHEST

To facilitate the distribution of currency which includes banknotes and rupee coins, the Reserve Bank has authorized select branches of scheduled banks to establish currency chests.  As on March 31, 2015, there were 4132 currency chests.

ROLE OF GOVERNMENT OF INDIA

In terms of Section 25 of RBI Act, 1934 the design of banknotes is required to be approved by the Central Government on the recommendations of the Central Board of the Reserve Bank of India. The responsibility for coinage vests with the Government of India on the basis of the Coinage Act, 2011 as amended from time to time. The Government of India is also responsible for the designing and minting of coins in various denominations.

SMALL COIN DEPOT

Some bank branches are authorised to establish Small Coin Depots to stock small coins i.e. coins below Rupee one. The Small Coin Depots also distribute small coins to other bank branches in their area of operation. As on March 31, 2015, there were 3812 small coin depots.

 

SOILED BANKNOTES

Yes, soiled and mutilated banknotes can be exchanged for value. These types of banknotes are divided into three categories:

  • Soiled: It includes a dirty note or two piece pasted noted.
  • Mutilated: a banknote of which a portion is missing or more than two pieces are present.
  • Imperfect: any banknote which wholly or partially washed, altered or indecipherable but other than mutilated one.

The value of exchange depends on these categories. All branches of commercial banks are authorized to adjudicate mutilated banknotes and pay value for these, in terms of the Reserve Bank of India (Note Refund) Rules, 2009

BANKNOTES SINCE INDEPENDENCE

Ashoka Pillar

The first banknote issued by independent India was the one rupee note issued in 1949. While retaining the same designs the new banknotes were issued with the symbol of Lion Capital of Ashoka Pillar at Sarnath in the watermark window in place of the portrait of King George.

MG Series Notes 1996

All the banknotes of this series bear the portrait of Mahatma Gandhi on the obverse (front) side, in place of symbol of Lion Capital of Ashoka Pillar.

MG Series Notes 2005

RBI issued new MG series notes 2005 which contains some additional / new security features as compared to the 1996 MG series. As MG Series notes have better security features, RBI decided to withdraw pre 2005 notes and now deadline for the same has been extended upto 31st Dec 2015. The some of security features are as follows:

  • Security Thread: The silver coloured machine-readable security thread is windowed on front side and fully embedded on reverse side.
  • Water Mark and electrotype Watermark: banknotes contain the portrait of Mahatma Gandhi and electrotype mark which showing the numeral as per note value in the watermark when window with a light.
  • Other Features are Optically Variable Ink (OVI), Intaglio Printing, Fluorescence and Micro letterings.
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