To unravel the mysteries of India’s currency system, this set of ‘FAQs on Basics of Indian Currency/Currency Management’ provides essential information about the Indian Rupee, legal tender, currency production, Reserve Bank’s role in currency management, symbols on Indian banknotes, how currency is distributed, etc.
What is the Indian currency called and what is its symbol?
The Indian currency is called the Indian Rupee (INR) and its symbol is ₹, which resembles the Devanagari letter “₹” (ra) and the Latin capital letter “R” with a double horizontal line at the top.
What is legal tender?
Legal tender refers to coins or banknotes that are accepted by law for discharging debts or obligations. Coins issued by the Government of India are legal tender if they are not defaced or underweight. Banknotes issued by the Reserve Bank of India (₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2000) are also legal tender, except for ₹500 and ₹1000 notes of the Mahatma Gandhi series issued before November 8, 2016.
Where are banknotes and coins produced/ minted?
Banknotes are printed at four currency presses owned by the Government of India’s Security Printing and Minting Corporation of India Ltd (SPMCIL) and the Reserve Bank’s subsidiary, Bharatiya Reserve Bank Note Mudran Private Ltd (BRBNMPL). Coins are minted in four mints owned by SPMCIL, located in Mumbai, Hyderabad, Kolkata and Noida.
What is a currency chest?
A currency chest is a storehouse authorized by the Reserve Bank of India for select scheduled banks to stock the banknotes and rupee coins on its behalf. The currency chests distribute these banknotes and coins to different bank’s branches in their operational areas.
What is a small coin depot?
A small coin depot is established by some authorized banks to stock and distribute small coins (less than Rupee One) to bank branches in their operational areas.
What is the role of the Reserve Bank of India in currency management?
The Reserve Bank of India has the sole right to issue banknotes in India, and the design, form and material of banknotes are approved by the Central Government. The Reserve Bank estimates the quantity of banknotes needed in different denominations and places orders with currency printing presses for supply. The RBI follows a clean note policy, ensuring good quality banknotes are in circulation.
Regarding coins, the RBI’s role is limited to distributing coins supplied by the Government of India, which is responsible for designing and minting coins.
Where can one find information regarding notes/coins supplied by RBI or currently in circulation?
Information about notes and coins supplied by RBI or in circulation is available on the RBI website.
How does the Reserve Bank distribute currency to the people?
The Reserve Bank manages currency operations through its Issue Offices located in various cities. These offices receive fresh banknotes from currency printing presses and send them to currency chests. There is also a network of currency chests managed by scheduled banks. The RBI offices receive coins from mints and distribute them to other RBI offices, Currency Chests and Small Coin Depots. Bank branches receive currency from Currency Chests and Small Coin Depots for further distribution to the public.
These FAQs shed light on the basics of Indian currency and RBI’s currency management, offering clarity on various aspects of the country’s monetary system. Understanding these fundamental concepts is crucial in navigating the financial landscape of India. If you have any further questions or need more information, feel free to explore additional resources provided on the RBI website.