Allen Minz M a II SEM Paper- 7 Public Administration
13
WITHDRAWAL OF PRE-2005 CURRENCY Submitted by : Allen Minj M.A. Public Admn Guided by : Dr. Surendra Mishra
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Transcript of Allen Minz M a II SEM Paper- 7 Public Administration
WITHDRAWAL OF PRE-2005 CURRENCY
Submitted by :
Allen Minj
M.A. Public Admn
Guided by :
Dr. Surendra Mishra
Chapterisation Introduction
RBI
History of banknotes in India
Concern
Recent data
Impact
Security Features
Conclusion
Bibliography
Introduction RBI has made announcements to withdraw old series
currency notes.
To rationalise notes with better security features .
Not an attempt to demonetise .
Reserve Bank of India Central bank of India , estd in 1935 .
Plays an important part in the development strategy of the Government of India .
General superintendence and direction .
Active in promoting financial inclusion policy .
RBI – effective involvement Acts as a machinery of currency management .
Manages currency in India but government , on advice of central bank .
Decides various denominations of notes to be issued .
Co-ordinates with government in designing notes , including security features .
Estimates quantity of notes denomination wise & accordingly , places indent with various printing press
History of Banknotes India was one of the first issuers of coins (6th Century
BC) .
(1540 to 1545) the Afghan Sher Shah Suri who introduced the silver Rupayya or Rupee coin
During the late 18th Century when political unrest occurred, agency houses developed banks such as the Bank of Bengal and Bahar, The Bank of Hindustan, Orient Bank Corporation and The Bank of Western India printed their own paper currency in the Urdu, Bengali and Nagri languages.
In 1866, when the financial establishments collapsed, the control of paper money also shifted to the British Government.
1867, the Victoria Portrait series of bank notes was issued in honour of Queen Victoria.
1950, India's modern Rupee reverted back to the design signature Rupee coin. The Lion Capital at Sarnath symbol replaced the George VI series of bank notes.
In 1996, the Mahatma Gandhi Series of Paper notes was introduced
Issue & Concern To rationalise currency with better security features .
Flush out unaccounted money stored in banks & personal lockers .
An international standard practice to withdraw old series notes .
Old series bank notes are weak link to counterfeiting .
Recent Data Exchange of 36,984 million pieces of notes issued
before 2005, which is valued at Rs 3,61,229 crore .
RBI’s Annual Report for 2004-05, 36,984 million pieces of notes valued at Rs 3,61,229 crore will be impacted as they are issued before 2005
Impact
Control fake notes in circulation .
Old series notes are weak link .
huge amount of black money stashed will find tough to exchanged for post-2005 notes .
Gold demand could rise , property may affect .
Some stimulus to Economy .
Diruptive move to transactions .
New lockers to clear old stock .
Security Features Water mark .
Latent Image .
Intaglio .
Fluorescence .
Security Thread .
Microlettering .
Optical variable ink .
Identification Mark .
Legal provision for counterfeiting .
Conclusion Currency an essential factor for economy .
Better check on currency features .
Valuable transaction to matters .
Minimises couterfeiting .
Accountability and record restored .
Bibliography The Hindu , withdrawal of pre 2005 currency
banknotes , 23rd January .
www.advfn.com
timesofindia.indiatimes.com
articles.economictimes.indiatimes.com
