Here the banking team of Jagran josh is providing important facts about Indian Currency which is useful for upcoming bank exams.
The Reserve Bank of India (RBI) was established on April 1, 1935 in accordance with the provisions of the RBI Act, 1934. Management of currency is one of the core central banking functions of the RBI. According to of Section 22 of the RBI Act, the Reserve Bank is the sole authority for issue of currency in India. Though the Government of India issues coins, they are put into circulation only through the RBI. This function is carried out by the Department of Currency Management.
The RBI has the objective of ensuring an adequate supply of clean and genuine notes as required by the public.
What is the Indian currency called?
The Indian currency is called the Indian Rupee (INR) and the coins are called paise. The symbol of the Indian Rupee is.
What is legal tender?
- The coins issued under the authority of The Coinage Act, 2011, shall be legal tender in payment or on account i.e. provided that a coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in RBI Act.
- Every banknote issued by Reserve Bank of India shall be legal tender at any place in India in payment or on account for the amount expressed therein, and shall be guaranteed by the Central Government, subject to provisions of RBI Act, 1934.
What is the meaning of "I promise to pay" clause?
The promissory clause printed on the banknotes i.e., "I promise to pay the bearer the sum of Rupees …” is a statement which means that the banknote is a legal tender for the specified amount.
What is the role of the RBI in currency management?
The RBI manages currency in India.
- The Government of India, on the advice of the RBI, decides on various denominations of banknotes to be issued.
- The RBI also co-ordinates with the Government in the designing of banknotes, including the security features.
- The RBI estimates the quantity of banknotes that are likely to be needed denomination-wise and accordingly, places indent with the various printing presses.
What is the role of Government of India in currency management?
According to RBI Act, 1934 the design of banknotes is required to be approved by the Central Government on the recommendations of the RBI. The Government of India is also responsible for the designing and minting of coins in various denominations. The role of RBI is limited to distribution of coins that are supplied by Government of India.
Who decides on the figure to be printed on a new note?
The Government of India in consultation with the RBI decides the design of banknotes.
What was the highest denomination note ever printed?
The highest denomination note ever printed by the RBI was the 10,000 note in 1938 and again in 1954. These notes were demonetized in 1946 and again in 1978.
Who is responsible for changing the design of coins from time to time?
The Government of India is responsible for the designing and minting of coins in various denominations.
Who decides on the quantity of coins to be minted?
The Government of India decides on the quantity of coins to be minted on the basis of indents received from the RBI.
What is currency paper made of?
Currency paper is composed of cotton and cotton rag.
Who decides on the volume and value of banknotes to be printed and on what basis?
The RBI based on the demand requirement indicates the volume and value of banknotes to be printed each year to the Government of India which get finalized after mutual consultation. The RBI estimates the demand for banknotes on the basis of the growth rate of the economy, inflation rate, the replacement demand and reserve stock requirements by using statistical models/techniques etc.
Where are notes and coins produced?
Notes are printed at four printing presses located at Nashik, Dewas, Mysore and Salboni. Coins are minted at the four mints at Mumbai, Noida, Kolkata and Hyderabad.
It is possible to identify which place a particular coin was minted at by determining the mark below the date of minting.
What is a currency chest?
To facilitate the distribution of banknotes and rupee coins, the RBI has authorised select branches of scheduled banks to establish currency chests. These are actually storehouses where banknotes and rupee coins are stocked on behalf of the RBI. As on March 31, 2015, there were 4132 currency chests. The currency chest branches are expected to distribute banknotes and rupee coins to other bank branches in their area of operation.
How many languages appear in the language panel of Indian banknotes?
There are fifteen languages appearing in the language panel of banknotes in addition to Hindi prominently displayed in the centre of the note and English on the reverse of the banknote.