issue of currency

8/7/2019 issue of currency

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Any form of money that is in public circulation. Currency includes

both hard money(coins) and soft money (paper money). Typically

currency refers to money that is legally designated as such by the

governing body.

Banknotes are Indian Currency Notes authorized to put into

circulation among public only by Reserve Bank of India (RBI).

Since RBI is the sole authority to issue notes they are called

Banknotes


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India's first coins after independence were

issued in 1950. They were 1 poisa, , 1 and 2Anna, , and 1 rupee denominations. The

sizes and compositions were the same as the

final Regal issues, except for the 1 paisa, which

was bronze but not holed.


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RBI has two departments :-

1. The Issue department

2. Banking department


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The issue department is dedicated to issuing currency. All

the currency issued is the monetary liability of RBI that

is backed by assets of equal value held by this

department. Assets consist of gold, coin, bullion, foreign

securities, rupee coins, and the government rupee

securities. The department acquires these assets

whenever required by issuing currency.


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The Banking department of RBI looks after the banking

operations. It takes care of the currency in circulation and

its withdrawal from circulation. Issuing new currency is

known as expansion of currency and withdrawal of

currency is known as contraction of currency


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To ensure adequate quantity of suppliesof currency notes and coins of good

quality.What R.B.I does.. Issues new currencyand destroys currency and coins not fit for

circulation.

It has to keep in forms of gold andforeign securities as per statutory rules

against notes & coins issued.


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All currency notes issued by RBI without One (1) rupee

and One rupee is issued by Finance Ministry.

The Reserve Bank will shortly issue new currency notes in

denominations of Rs 5, Rs 10 Rs 50, Rs 100, Rs 500 and

Rs 1,000.


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Notes are printed by Government of India at itsprinting presses at Nashik and Dewas and at the pressesof Bharatiya Reserve Bank Note Mudran Private Ltd.(BRBNMPL) at Mysore and Salboni.

Coins are minted at the four Government Mints atMumbai, Kolkata, Noida and Hyderabad.

Presses are required to produce around 12,000million pieces of notes per annum to maintainclean notes in circulation.


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The average life of a note in circulation variesfrom 1 year to 2 years.

The cost of production of banknote isreimbursed by the Bank to the Press and the cost

of production of coins is borne by GOI itself.

The design, form and material of the bank

notes are recommended by Central Board ofDirectors of RBI and approved by GOI.


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Mahatma Gandhi Series

ImageValue

D imen si on s Mai n Co lor

Description

Year of issue

Obverse Reverse Obverse Reverse Watermark

5 117 63 mm Green

Mahatma Gandhi

Tractor

Mahatma Gandhi

2002

10 137 63 mm Orange-violetRhinoceros, elephan

t, tiger1996

20 147 63 mm Red-orangePalm trees, North

Bay

2002

50 147 73 mm Violet Parliament of India 1997

100 157 73 mm

Blue-green at

centre, brown-purple at 2 sides

Himalaya Mountains 1996

500 167 73 mm Olive and yellow Dandi March 2000

Economy of India 2000

1000 177 73 mm Amber-Red


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issue of currency

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