Reserve Depository Fiscal Establishment Of India Final Result Currency Notes

RBI Issue Currency Notes inward India

Reserve Bank of Bharat (RBI) has a sole correct to number currency notes inward India. This correct is guaranteed exclusively to a item entity (a individual or organization) in addition to nobody else. It is an unshared authority, an exclusive privilege, or a monopoly to create something without opened upwardly competition. It is commonly granted past times a sovereign authorization (e.g. parliament) to execute pregnant tasks.

The Section 22(1) of Reserve Bank of Bharat Act, 1934 (amended 7^th Jan 2013) empowers RBI amongst a sole correct to number banknotes of all allowed denominations for their circulation inward India.^[1]

Currently, the banking concern notes issued inward Bharat attain from a higher denomination of ₨.1000 to the lowest denomination of ₨.5.

In India, in that location are nine unique banking concern notes inward circulation, namely;

₨.1 note,
₨.2 note,
₨.5 note,
₨.10 note,
₨.20 note,
₨.50 note,
₨.100 note,
₨.500 note, and
₨.1000 note.

Though the issuance of novel 1 rupee in addition to 2 rupees notes has been discontinued (stopped printing), their one-time counterparts are withal valid in addition to are inward circulation inward the Indian market.^[2]

Section 24(1) of RBI Act 1934, has authorised the Reserve Bank of Bharat to number notes amongst denominations higher than 1 K such equally ₨.5000 complaint in addition to ₨.10,000 note. However, it has been restricted to number exclusively upwardly to the maximum aspect upwardly value of 10 K rupees. Hence, in that location is a possibility inward the time to come to encounter ₨.5000 in addition to ₨.10,000 notes inward circulation. But such chances are less probable to occur since the availability of higher denominations is probable to proliferate dark money transactions in addition to may number inward taxation evasion.^[2]

The metallic coins available inward Bharat right away attain from a higher denomination of ₨.10 money to a lower denomination of 10 Paise coin.

Currently, in that location are 8 coins amongst unique designs inward circulation namely;

10 Paise coin,
20 Paise coin,
25 Paise money (also called Chavanni or Charana),
50 Paise money (Atthani or Aathana),
One Rupee money (Ek Rupaya),
Two Rupees money (Dau Rupaye),
Five Rupees money (Paanch Rupaye), and
Ten Rupees money (Dus Rupaye).

The coins from 10 Paise upwardly to 50 Paise are known equally ‘Small Coins’ whereas those from One Rupee to Ten Rupees are called ‘Rupee Coins.’^[2]

The coins of 5, 10, in addition to xx paise are right away non accepted inward the market, in addition to fifty-fifty their minting in addition to issuance has been stopped.^[3]

The 25 paise money ceased its condition equally a legal tender on 30^th June 2011.^[4]

Now fifty-fifty 50 paise money has started to lose its sheen inward the marketplace but RBI insist that it's withal a legal tender in addition to should survive accepted.^[5]

The Section iv of The Coinage Act, 2011 specifies that metallic coins tin survive minted (only equally per provisions established past times law) upwardly to a higher denomination of 1 K rupees.^[6]

The liabilities (responsibilities specified nether law) of Issue Department are inward Section 34(1) of RBI Act 1934.^[1]

Issue Department is liable for a full or aggregate value (AV) of:

The currency notes (CN) issued past times Government of Bharat (GOI) (before issuance of banking concern notes past times RBI), and
Bank notes (BN) issued past times RBI inward circulation for the fourth dimension being.
Here, AV = CN past times GOI + BN past times RBI.^[2]

Issue Department maintains eligible assets equivalent inward value to that of aggregate value (AV) for backing the issued banking concern notes.^[2]

As per Section 33(1) of RBI Act 1934, these assets mainly comprises of:

Coins in addition to Bullions (bars) of Gold,
Foreign Securities,
Rupee Coin and
Rupee Securities.^[1]

Issue Department's assets in addition to liabilities are classify from the Banking Department of RBI.^[1]

Issue Department issues currency notes when the Banking Department raises demand. While raising such a demand, the Banking Department has to transfer regime in addition to other approved securities to it.^[7]

Different methods or systems are used to regulate the number of notes. In Indian context, 2 such methods are noteworthy, namely;