Reserve Bank of India
07:35
Showing posts with label Indian Currency. Show all posts
Showing posts with label Indian Currency. Show all posts
Thursday, 11 July 2019
Friday, 15 September 2017
Reserve Bank of India
08:07
Reserve Bank Of India:Sophisticated Machines For Processing Currency Notes
Reserve Bank Of India:Sophisticated Machines For Processing Currency Notes
Date : Sep 10, 2017
RBI says it uses sophisticated machines for processing currency notes
It has been reported in a section of the press, quoting a reply to RTI application, that RBI was not using machines for counting Specified Bank Notes (SBNs). RBI actually uses sophisticated Currency Verification & Processing (CVPS) machines for checking the numerical accuracy and genuineness of the currency notes, including SBNs. These machines are way superior to the note counting machines. With a view to augmenting processing capacity, RBI is using the available machines in two shifts and has been using some machines temporarily drawn from commercial banks after suitable modifications. RBI is also exploring other options to augment processing capacity even further.
Jose J. Kattoor
Chief General Manager
Press Release: 2017-2018/685
Source:RBI
Tuesday, 29 August 2017
Reserve Bank of India
09:16
Reserve Bank Of India: New 200 Rupees Note Release and Details
Reserve Bank Of India: New 200 Rupees Note Release and Details
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| Rs200 -Front |
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| Rs.200 -Back |
1. The new note will be released inder Mahatma Gandhi (New) Series, bearing signature of RBI Governor Dr. Urjit R. Patel.
2. See through register with denominational numeral 200. Latent image with denominational numeral 200
3.Denominational numeral २०० in Devnagari
4. Portrait of Mahatma Gandhi at the centre
5. Micro letters 'RBI', 'à¤ारत', 'India' and '200'
6. Windowed security thread with inscriptions 'à¤ारत' and RBI ..
7. Guarantee Clause, Governor's signature with Promise Clause and RBI emblem towards right of Mahatma Gandhi portrait
8. Denominational numeral with Rupee Symbol, Rs 200 in colour changing ink (green to blue) on bottom right
9. Ashoka Pillar emblem on the right
10. Mahatma Gandhi portrait and electrotype (200) watermarks
11. Number panel with numerals growing from small to big on the top left side and bottom right side
12. For visually impaired: Intaglio or raised printing of Mahatma Gandhi portrait, Ashoka Pillar emblem, raised Identification mark H with micro-text ₹200, four angular bleed lines with two circles in between the lines both on the right and left sides
Source:ET
Wednesday, 14 June 2017
Reserve Bank of India
07:06
The Reserve Bank Of India Announced Introduction of New Rs 500 Currency Notes
The Reserve Bank Of India Announced Introduction of New Rs 500 Currency Notes
The Reserve Banks of India (RBI) today announced introduction of new Rs 500 currency notes.
The new version will have few different aspects. The one noticeable aspect of the new currency notes is the inclusion of an inset letter "A".
Besides, in the new notes the signature of the RBI Governor will be on the reverse side.
"In continuation of issuing of Rs 500 denomination banknotes in Mahatma Gandhi (new) series from time to time which are currently legal tender, a new batch of banknotes with inset letter "A" in both the number panels bearing the signature of Dr. Urjit R. Patel Governor, Reserve Bank of India; with the year of printing '2017' on the reverse, are being issued," RBI said in a press release.
The design of these notes is similar in all respects to the Rs 500 banknotes in Mahatma Gandhi (New) Series, RBI added.
The current Rs 500 notes have inset letter E. The central bank had demonetised old Rs 500 and Rs 1000 notes on November 8 last year. After that RBI introduced new Rs 500 and 2000 currency notes.
Last week, RBI had said that nearly 83 per cent of the currency has been remonetised and denied there was any shortage of cash in the system.
The data on the amount of demonetised notes returned, however, is still not available.
Source:The Economic Times
Sunday, 11 June 2017
Reserve Bank of India
07:28
83% currency remonetised so far: RBI
83% currency remonetised so far: RBI
Mumbai: Mr B P Kanungo, Deputy Governor of the RBI, has verified that over 82.7 per cent of the currency has already been remonetised so far, which is around 108 per cent in volume terms. The Government of India had demonetised old Rs 500 (US$ 7.76) and Rs 1,000 (US$ 15.51) notes on November 9, 2016, scrapping around 87 per cent of the currency in circulation. Mr Kanungo further stated that it would be wrong to assume that there is any shortage of currency in the system as RBI is monitoring the situation on a regular basis and has made enough arrangements to replenish cash. There were 17,165 million pieces of Rs 500 (US$ 7.76) notes and 6,858 million pieces of Rs 1,000 (US$ 15.51) notes in circulation in the country before the announcement of demonetisation in the country.
Source:IBEF
Thursday, 6 April 2017
news
18:56
FIND OUT NEXT NEW INDIAN CURRENCY 200/-
FIND OUT NEXT NEW INDIAN CURRENCY 200/-
TWO HUNDRED RUPEES - NEW
Monday, 3 April 2017
security
07:11
Central Government plans to change security marks of banknotes every 3-4 yrs
Central Government plans to change security marks of banknotes every 3-4 yrs
To check counterfeiting, the government plans to change security features of higher denomination banknotes of Rs 2,000 and Rs 500 every 3-4 years in accordance with global standards.
The move comes in the wake of recovery of a large amount of fake Indian currency notes in last four months after demonetisation.
The issue was discussed threadbare at a high-level meeting on Thursday attended by senior officials of the ministries of Finance and Home, including Union Home Secretary Rajiv Mehrishi.
Advocating the move, Home Ministry officials said most of the developed countries change security features of their currency notes every 3-4 years and therefore, it is absolutely necessary for India to follow this policy.
The change in design of Indian currency notes of higher denominations was long due. Till its demonetisation, there had been no major change in the Rs 1,000 note since its introduction in 2000. Changes in the old Rs 500 note, which was launched in 1987, were carried out more than a decade ago.
The newly introduced notes had no additional security features and were similar to those in the old Rs 1,000 and Rs 500 notes, officials said.
A close look by the investigators on some of the recently seized fake notes found that at least 11 of the 17 security features in the new Rs 2,000 notes had been replicated.
These included the transparent area, watermark, Ashoka Pillar emblem, the letters Rs 2000 on the left, the guarantee clause with the Reserve Bank of India Governors signature and the denomination number in Devanagari on the front, officials said.
Besides, the motif of Chandrayaan, the Swachh Bharat logo and the year of printing had been copied on the reverse side. Although the print and paper quality of the seized counterfeits was poor, they resembled genuine notes.
The officials said the change of security features of currency notes in every 3-4 years will lead to curbing of counterfeiting to a great extent.
Those who were arrested recently along with fake notes with face value of Rs 2,000 have told investigators that the notes were printed in Pakistan with the help of the Inter Services Intelligence (ISI) and had been smuggled into the country through Bangladesh, the officials claimed.
A study conducted by the Indian Statistical Institute, Kolkata, in 2016 pegged the value of fake Indian currency notes in circulation at Rs 400 crore.
Source:Business Today
Monday, 27 March 2017
Reserve Bank of India
07:42
No plans to introduce new currency notes, says RBI Deputy Governor
No plans to introduce new currency notes, says RBI Deputy Governor
Kumbakonam:The Reserve Bank of India currently has no plans of introducing new denomination currencies, a senior RBI official said on Sunday.
"Presently RBI has no idea to introduce currencies of new denominations. The central banking institution wants to encourage cashless transactions, which are helpful to the people", RBI Deputy Governor N.S. Vishwanathan said while speaking at a lecture here on "Credit culture and the financial system".
In this connection, Minister of State for Finance Arjun Ram Meghwal had told Parliament on Friday that the government is not planning to print Rs 5,000 and Rs 10,000 currency notes.
Referring to banks' non-performing assets (NPAs), or bad loans, Vishwanathan said here that these are affecting the income and profit of banks.
"Banks cannot escape from the responsibility of controlling NPAs in their balance sheets," he said.
Banks are expected to base their lending decisions on a careful and prudent assessment of the financial position and repaying capacity of the borrower, while credit should be given to only the right people, he added.
The magnitude of the problem can be guaged from the NPA figures of state-run banks, which at the end of the current fiscal's second quarter that ended in September, rose to Rs 6.3 lakh crore, as compared to Rs 5.5 lakh crore at the end of the first quarter.
Source:Newshead
Sunday, 19 March 2017
Reserve Bank of India
11:23
Reserve Bank Of India:Plastic banknotes trial at five locations of the country
Reserve Bank Of India:Plastic banknotes trial at five locations of the country
Government to conduct field trial with plastic banknotes at five locations of the country; Approval for procurement of plastic substrate and printing of bank notes of Rs.10 denomination on plastic banknote substrates conveyed to RBI
It has been decided to conduct a field trial with plastic banknotes at five locations of the country. Approval for procurement of plastic substrate and printing of bank notes of Rs.10 denomination on plastic banknote substrates has been conveyed to RBI.
Plastic banknotes are expected to last longer than cotton substrate based banknotes. Over the years, central banks across the world have been exploring different solutions for extending the lifecycle of banknotes. These include introduction of plastic banknotes and other developments in banknote substrates for enhancing durability including use of natural fibre blends, varnish of banknotes etc.
The following actions have been taken by RBI to focus on the need to discourage people from inscription, scrawling or scribbling on any part of the notes:
i.Vide its Directive dated November 07, 2001 under Section 35 ( A) of B. R. Act, 1935 advised all banks not to write anything on watermark window of banknotes.
ii. RBI has also issued a Press Release on December 31, 2013 on “RBI’s clarification on scribbling on Banknotes”.
iii.RBI has advised all the bank branches to display at their branch premises at prominent place, a board indicating the availability of notes exchange facility for information of general public.
iv.RBI from time to time issues instructions to banks to organize exchange melas to mop up soiled and mutilated banknotes from circulation.
v.RBI periodically issues Press Releases appealing to the members of public not to inscribe anything on banknotes as it damages the notes and poses difficulty in identifying the features of genuine banknotes.
An inter-disciplinary Standing Committee on Cyber Security has been constituted to review the threats inherent in the existing/ emerging technology and suggest appropriate policy interventions to strengthen cyber security and resilience.
This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha on 17.03.2017.
Source:PIBNEWS
Friday, 17 March 2017
Indian Currency
07:29
‘Children Bank of India’ notes worth Rs 9.90L surface in Hyderabad, man held
‘Children Bank of India’ notes worth Rs 9.90L surface in Hyderabad, man held
The Hyderabad Police arrested on Tuesday a man who was allegedly trying to deposit Rs 9.90 lakh in fake currency notes bearing the name of the “Children’s Bank of India”.
Malkajgiri police arrested one Yousuf Shaik from Moula-Ali area of the city after he was caught by Allahabad Bank staff while allegedly trying to deposit fake currency in the denominations of Rs 2,000 and Rs 500.
This comes weeks after fake Rs 2000 banknotes bearing the imprint of the “Children Bank of India” were dispensed from ATMs in Delhi and Uttar Pradesh.
According to the police, Shaik allegedly came to the Allahabad Bank branch near Radhika Theatre at AS Rao Nagar soon after the bank opened at 10.30 am. He quietly handed over a few bundles of notes to the bank cashier to deposit the same in his savings bank account. There were in all 400 notes of Rs 2,000 denomination and 380 notes of Rs 500 denomination, amounting to a total of Rs 9.90 lakh, police said.
The cashier, initially, did not suspect anything as the notes were similar to the original ones. However, while counting he had a close look at the notes and was shocked to notice that they had the imprint of the “Children Bank of India” instead of the Reserve Bank of India, police said.
While holding the customer at the counter, he quietly informed the same to the branch manager, who in turn informed the authorities.
Within minutes, the police arrived on the scene and took Shaik into custody. During interrogation, Shaik, who runs a small stationery shop in Malkajgiri area, told police that he had got the money from some customers.
Malkajgiri inspector Janaki Reddy said after a lot of grilling, Shaik admitted that he had procured the notes from a wholesale dealer in Osmangunj area. “This dealer has several such bundles of counterfeit notes. In fact, they are paper notes used by children for playing,” Reddy said.
Rachakonda commissioner of police Mahesh Bhagawat told Hindustan Times the cops were on high alert since the fake notes used by Shaik were similar to those, which had surfaced in some ATMs in Delhi and UP. “But this person is a small stationery shop owner who tried to cheat the bank authorities with fake notes and is not part of any racket,” he said.
According to bank sources, Shaik opened his savings account only in June 2016 and had been making only smaller transactions. This was the first time that he tried to deposit such a huge amount. Recently, he had approached the bank authorities for some loan for his shop, but it was rejected as he did not meet the requirements, bank authorities said.
Source:Hindustan Times
Monday, 13 March 2017
Reserve Bank of India
08:45
Submission of old currency notes of Rs. 500 and Rs. 1000 :-Grace Period
Submission of old currency notes of Rs. 500 and Rs. 1000 :-Grace Period
Submission of old currency notes of Rs. 500 and Rs. 1000; The grace period for Indian citizen residing in India is March 31, 2017 and for Indian citizen resident outside is June 30, 2017
The Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 was promulgated by the President of India (GoI Ordinance No. 10 of 2016 dated December 30, 2016) and it came into effect from December 31, 2016. Subsequently, the Specified Bank Notes (Cessation of Liabilities) Act, 2017 was notified on 28th February, 2017.
A grace period has been provided during which the Specified Bank Notes can be deposited in accordance with this Ordinance/Act by Indian citizens who make a declaration that they were outside India between November 9 and December 30, 2016, subject to conditions that may be specified by notification by the Central Government. The grace period for Indian citizen residing in India is March 31, 2017 and for Indian citizen resident outside is June 30, 2017 as per Government of India notification no. 10 dated December 30, 2016. While there is no monetary limit for exchange for the eligible Resident Indians, the limit for NRIs is as per the relevant FEMA Regulations.
The Reserve Bank, if satisfied after making the necessary verifications, that the reasons for failure to deposit the notes till December 30, 2016 are genuine, will credit the value of notes in the KYC (Know Your Customer) compliant bank account of the tenderer. This facility is available only at five selected RBI Offices (Mumbai, New Delhi, Chennai, Kolkata, and Nagpur).
This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.
Source:PIBNEWS
Tuesday, 7 March 2017
Reserve Bank of India
08:40
Reserve Bank Of India's Clean Note Policy
Reserve Bank Of India's Clean Note Policy
Salient Features of Clean Note Policy by RBI:
- Do away with stapling of note packets
- Introduce banding the packets with paper/polythene bands so that the life of the currency notes is increased.
- The objective of the Reserve Bank’s Clean Note Policy is to give the citizens good quality currency notes and coins while the soiled notes are withdrawn out of circulation.
- RBI instructed the banks to issue only good quality clean notes to the public
- Banks to refrain from recycling the soiled notes received by them over their counters.
- The members of public were urged not to write on the currency notes
- Banks were instructed to provide unrestricted facility for exchange of soiled and mutilated notes.
- As per the Reserve Bank instructions, currency chest branches of the banks must offer, even to non-customers, good quality notes and coins in exchange for soiled and mutilated notes.
- Reserve Bank has given specific monthly targets for distribution of coins to currency chest branches in rural and semi urban areas currency chests. The Reserve Bank monitors these targets from the feedback reports.
- Banks should run open one currency chest branch on one Sunday in a month at selected centres to exclusively provide currency exchange and distribution of small coins and suck out the bad notes.
Monday, 20 February 2017
State Bank of India
07:19
State Bank Of India collaborates with Korea Development Bank; launches Korea Desk in Mumbai
State Bank Of India collaborates with Korea Development Bank; launches Korea Desk in Mumbai
New Delhi , Feb 15 : State Bank of India (SBI) on Wednesday announced its collaboration with the Korea Development Bank (KDB), which was inaugurated by the State Bank's Chairman Arundhati Bhattacharya and Vice Chairman Dai Hyun Lee (KDB) in the presence of H.E. Soung-eun Kim, Consul General of the Republic of Korea for set up of a 'Korea Desk' in Mumbai.
The bank aims to be the window to inbound Korean Investments in India and vice-versa, which will facilitate the establishment of banking relationship with the Korean corporates and the Korean nationals, provide information on industries, sectors etc.
However, such information can be utilized by the Korean corporate for taking an appropriate decision for their business expansion and securing rupee funding in India etc. The Project advisory and appraisal, rupee funding, forex hedging and other treasury services will all be made available through the window of the Korea Desk.
With its strong presence overseas, the State Bank of India has its overseas operations covered under International Banking Group which accounted for 14.69 percent of the Bank's Balance Sheet and 42.06 percent of the Bank's profit in FY 2016.
Trade between India and South Korea is rising steadily over the period of time and trade between both countries in 2015-16 was USD 16.89 billion.
The signing of revised India-South Korea Double Taxation Avoidance Agreement and Comprehensive Economic Cooperation Agreement (CEPA) envisages a greater co-operation between the two countries and renewed interest amongst the Korean corporate.
Emphasis by the Government of India on "Make in India" has thrown open numerous opportunities to the Korean Corporates to invest in India in areas such as technology, defence, ship building, etc.
As a premier bank of India, SBI is keen to be a partner in the growth of economic relations between India and Korea and has taken the initiative to set up a Korea Desk in Mumbai in collaboration with the Korea Development Bank, to cater to the needs of the Korean Corporates in India.
The Korea Development Bank is a leading bank in Korea providing credit facilities to the Korean Corporates. This collaboration between SBI and KDB would provide opportunities to the Korean Corporates to leverage the strengths and reach of SBI to expand their business in India.
Korea Desk is headed by Woong Soo Choi, a representative of the Korea Development Bank.
Source:Kerala News
Source:Kerala News
Friday, 17 February 2017
Reserve Bank of India
08:12
Forgers getting better? NIA says fake Rs 2000 notes ‘identical to the original’
Forgers getting better? NIA says fake Rs 2000 notes ‘identical to the original’
The National Investigation Agency (NIA) has seized three “high quality” fake Rs 2,000 banknotes from a fugitive from West Bengal, who is accused of operating a counterfeit Indian money racket.
The anti-terrorism agency arrested Umar Faruq, who is from Malda in West Bengal, on Tuesday when he was on his way to deliver samples of the note to a fellow smuggler of fake currency. He was on the run since he was implicated for smuggling fake currency notes two years ago.
This is first such seizure of fake notes by the central agency. Before Tuesday’s recovery by the NIA, the Border Security Force (BSF) had also seized 40 fake currency notes in the denomination of Rs 2,000 on February 8 in Malda district, which is on India-Bangladesh border. The case is being probed by state police.
NIA officials said the seized notes looked identical to the original. A detailed forensic analysis is on to check how many security features of the genuine currency have been found to be replicated in them, they added.
The NIA has been mandated by the government to look into only those cases where recovered Fake Indian Currency Notes (FICNs) are of high quality and involvement of organised gangs from across the border is suspected.
Tuesday’s recovery triggered concerns that forgers are getting better at replicating security features of the new high-value notes, introduced after the Centre demonetised Rs 500 and 1,000 bills in November last year to fight corruption, counterfeiting and terrorist funding.
“There have been around half-a-dozen cases in which fake Rs 2,000 notes were recovered after the demonetisation exercise. But they were of inferior quality, mostly printouts of scanned copies of the note. But the recovery on Tuesday by our investigators appear to be of high quality. That’s why we have sought their detailed forensic examination,” a senior NIA official said.
Of the 17 security features on the Rs 2,000 note printed by the Reserve Bank of India, 10 were found on the seized notes, according to intelligence sources. More details would be known once they get the forensic report in a couple of weeks.
Preliminary inquiries by the BSF revealed that counterfeiters have managed to copy six front features —including the see-through register where the numeral 2,000 can be seen when held against light; the Devanagari inscription, portrait of Mahatma Gandhi, and the Ashoka pillar emblem.
They have copied four back features, including the year of manufacturing (2016), the Swachh Bharat logo, the value written in 16 languages, and the motif of Mangalyaan.
Counterfeiting has been reportedly rampant with rackets suspected to be based in Bangladesh, Nepal and Pakistan pushing huge sums of fake money into the Indian economy. It was one of the reasons the government gave when it recalled the two high-value notes, draining out 86% of the cash in circulation.
At the time of introducing the new bills of Rs 2000, the Reserve Bank of India listed out their security features that included a latent image with the denominational numeral 2,000, which can be seen when it is held at a 45 degree angle at the eye level, a colour-shifting windowed security thread with the inscription ‘à¤ारत’, RBI and 2,000 and a see-through register with the denominational numeral 2,000 which can be seen when the note is held up to light.
“We want to see how far the forgers, most likely sitting in Pakistan, have managed to replicate these features of new bills,” said the NIA official.
Source:Banking Updates
Source:Banking Updates
Thursday, 26 January 2017
Reserve Bank of India
18:47
Good news! RBI may lift weekly cash withdrawal limit by February end
Good news! RBI may lift weekly cash withdrawal limit by February end
With cash situation improving, there will be little need to have withdrawal restrictions: Bankers
With the cash crunch situation easing, the Reserve Bank might do away with the weekly withdrawal limits from banks as well as ATMs by the end of next month, bankers said.
The RBI had recently raised the ATM withdrawal limit to Rs 10,000 a day but maintained the weekly cap at Rs 24,000 for saving account and Rs 1 lakh for current account holders.
"I think the restrictions on withdrawal by RBI should be completely lifted by February-end or by first half of March as cash situation is easing gradually," Bank of Maharashtra executive director R K Gupta told PTI.
It is entirely RBI's decision and the central bank would decide after making holistic assessment of the situation, he said.
According to SBI's research report Ecowrap, "By the end of February, 78-88 per cent of the currency could be back in the system under the best case scenario in terms of an optimal currency distribution (more small denomination notes)," the report said, adding that "it seems within next 2 months things would be pretty close to normal."
Another senior public sector bank official said the situation is easing and it is a matter of weeks when the curb on withdrawal gets eased.
"My hunch is that it should happen before end of the current fiscal," the official said, adding, RBI has been progressively easing the curb.
The RBI had earlier increased the daily withdrawal limit from ATMs to Rs 4,500 from Rs 2,500 effective January 1, just a day after 50-day demonetisation period ended.
Meanwhile, RBI Governor Urjit Patel could not set a time frame before the Standing Committee on Finance for return of normalcy in the banking system even as the central bank asserted that Rs 9.2 lakh crore or 60 per cent of demonetised currency has been replaced.
In a surprise move on November 8, Prime Minister Narendra Modi had announced demonetisation of old Rs 500 and Rs 1,000 notes.
Following the decision, the RBI had put restrictions on withdrawal of cash from ATMs as well as from banks to deal with shortage of new high denomination currency notes. This led to long queues at ATMs and bank branches.
All over the country, the banks had to deal with huge rush of people who thronged their branches to deposit junked notes. The deadline for depositing old notes with banks ended on December 30.
Source:Business Standard
Saturday, 17 December 2016
Indian Currency
07:50
EXCHANGE FACILITIES TO FOREIGN CITIZENS
EXCHANGE FACILITIES TO FOREIGN CITIZENS
Thursday, 8 December 2016
Reserve Bank of India
21:53
How Currency is Issued in India?
How Currency is Issued in India?
In India, the paper currency was first issued during British East India Company rule. The first paper notes were issued by the private banks such as Bank of Hindustan and the presidency banks during late 18th century. Via the Paper Currency Act of 1861, the British Government of India was conferred the monopoly to issue paper notes in India.
After this act, the government of India entered into agreements with the Presidency Banks to work as authorized agents to promote circulations of the paper notes across length and breadth of British India. But since India is a vast country, redemption of these notes became a issue soon. Consequently, some “Currency Circles” came up in various parts of country where the paper notes of Indian government were legal tenders. In 1867, the agreements with the presidency banks were terminated. The job of promoting, circulating and redemption of the currency notes was entrusted to Mint Masters, Accountant General and the Controller of Currency. This practice continued till RBI came into existence in 1935. Section 22 of the RBI Act 1934 makes provided that RBI has the sole right to issue Bank notes of all denominations. Thus, Reserve Bank is responsible for the design, production and overall management of the nation’s currency, with the goal of ensuring an adequate supply of clean and genuine notes. In consultation with the Government, the Reserve Bank routinely addresses security issues and targets ways to enhance security features to reduce the risk of counterfeiting or forgery of currency notes. Key Landmarks: 1935 : Currency Function moved from Controller of currency to RBI 1957 : Decimalization of coinage 1995 : RBI sets up printing Press 2000 : RBI mechanizes the currency processing 2005 : RBI introduces Machine-readable security features
Paper Currency Notes At present, paper currency notes in India are issued in the denomination of Rs. 5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1,000. The printing of Rs. 1 and Rs. 2 denominations has been discontinued, though the notes in circulation are valid. Reserve Bank of India has been authorized to issue notes of Rs. 5000 and Rs. 10000 also. In fact, as per RBI act, RBI can issue any note of any denomination but NOT exceeding Rs. 10,000. The notes denomination is notified by Government and RBI acts accordingly.
Issue Department and Currency Department RBI has a separate department called issue department whose assets and liabilities are kept separate from the Banking Department. Currency Management function of Reserve Bank is carried out at the “Department of Currency Management” located at Central Office Mumbai. There are 19 Issue offices. RBI authorizes selected branches of Banks to establish Currency Chests and Coin Deposits. At present there is a network of 4281 Curency Chests and 4044 Small Coin Deposits.
Issue of Coins The distribution of Coins is undertaken by RBI as an agent of the Government, (coins are minted by the Government and not by RBI). Coins up to 50 paisa are called “small coins” and coins of Rupee one and above are called “Rupee coins”.
Proportional Reserve System v/s Minimum Reserve System Originally, the assets of the Issue department were to consist of not less than 2/5th of the Gold or sterling securities, provided Gold was not less than Rs. 40 Crores in value. Remaining 3/5th of the assets might be rupee coins. This was called “Proportional Reserve System”. In 1956, this system was changed. Now, RBI is required to maintain a Gold and Foreign Exchange Reserves of Rs. 200 Crore of which at least Rs. 115 Crore should be in Gold. This is called Minimum Reserve System. This system continues till date.
Currency Chests Currency chests are storehouses where bank notes and rupee coins are stocked on behalf of the Reserve Bank. The currency chests have been established with State Bank of India, six associate banks, nationalized banks, private sector banks, a foreign bank, a state cooperative bank and a regional rural bank. Deposits into the currency chest are treated as reserves with the Reserve Bank and are included in the Cash Reserve Ratio.
Locations of Note Printing Presses: The Security Printing and Minting Corporation of India Limited (SPMCIL) prints the notes. It is a wholly owned company of the Government of India. Its printing presses are located at Nasik (Maharashtra) and Dewas (Madhya Pradesh). Apart from that, the Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL), a wholly owned subsidiary of the Reserve Bank, also has set up printing presses. The presses of BRBNMPL are located at Mysore in Karnataka and Salboni in West Bengal. Security Printing and Minting Corporation of India Limited (SPMCIL) has 4 mints for coin production located at Mumbai, Noida, Kolkata and Hyderabad.
Coins and notes as Legal Tenders: One Rupee Note and One Rupee coins are legal tenders for unlimited amounts. 50 Paisa coins are legal tender for any sum not above Rs. 10. The coins of smaller than 50 paisa value are legal tenders of a sum below Re. 1.
Star Series Notes The Star series notes are currently issued in Rs. 10, 20, 50 and Rs. 100. These notes are issued to replace the defected printed notes at the printing press. They have an additional character of a star and the bundles are NOT in series. Rest all the features are same.
Languages on Currency Notes The amount of a banknote is written on it in 17 languages out of 22 official languages of India. The languages are Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, Telugu and Urdu.
Source:gktoday
