The Indian currency is known as Rupee (INR).One Rupee consists of 100 paise. Reserve Bank issues notes in India and the notes are issued in the denomination of Rs.5, Rs. 10, Rs.20, Rs. 50, Rs. 100, Rs. 500 and Rs 1,000. Rupee Coins in India are available in the denomination of One Rupee, Two Rupees & five Rupees .
The Reserve Bank manages currency in India. The reserve bank coordinates with the government on the denomination, designing, & security features of the notes. The Reserve Bank estimates the quantity of notes on the basis of denomination. The notes are indent with various presses through the Government of India. The notes received from the presses are issued and a reserve stock maintained. Notes received from banks and currency chests are examined, notes fit for circulation are reissued and the other are destroyed so as to maintain the quality of notes in the circulation.
Under Section 22 of Reserve Bank of India Act, the bank issue notes of all denominations. The note issued by the Reserve Bank has following advantages.
- It brings uniformity to note issue
- It is easier to control credit when there is a single body of note issue.
- It helps in the stabilization of the value of the currency
- It keeps alive the public faith in the paper currency
- Credit can be regulated according to the need of the business
How does the Reserve Bank estimate the demand for bank notes?
The Reserve Bank estimates the demand for bank notes on the basis of the growth of the economy, the replacement demand and reserve requirements by using statistical methods.
How does the Reserve Bank reach the currency to people?
The reserve Bank manages the currency operations through its offices located at Ahmadabad , Bangalore, Bhopal , Bhubaneswar , Belapur, Kolkata, Chandigarh , Chennai, Guwahati , Hyderabad , Jaipur , Kanpur, Lucknow , Mumbai , Nagpur , New Delhi , Patna and Thiruvananthapuram . These offices receive fresh notes from the note presses. Similarly, the Reserve Bank offices located at Kolkata, Hyderabad, Mumbai and New Delhi initially receive the coins from the mints.
What do you mean by soiled & mutilated notes?
Soiled notes are notes, which have become dirty and limp due to excessive use. Mutilated notes are notes, which are torn, disfigured, burnt, washed, eaten by white ants etc. A double numbered note cut into two pieces but on which both the numbers are intact is now being treated as soiled note. Soiled & mutilated notes can be tendered at all bank branches for and exchange obtained.