How does rbi issue currency

The old design notes are then gradually withdrawn from circulation when they become unfit to be re-issued. Central banks the world over change the design of their banknotes and introduce new security features primarily to make counterfeiting difficult and to stay ahead of counterfeiters. India also follows the same policy.

The thread fluoresces in yellow on both sides under ultraviolet light. The thread appears as a continuous line from behind when held up against light. It fluoresces in yellow on the reverse and the text will fluoresce on the obverse under ultraviolet light. See through register: On the left side of the note, a part of the numeral of each denomination is printed on the obverse front and the other part on the reverse. The accurate back to back registration makes the numeral appear as one when viewed against light.

Water Mark and electrotype watermark: The banknotes contain the portrait of Mahatma Gandhi in the watermark window with a light and shade effect and multi-directional lines. An electrotype mark showing the denominational numeral in each denomination banknote also appears in the watermark widow and these can be viewed better when the banknote is held against light. The colour of these numerals appears green when the banknotes are held flat but would change to blue when the banknotes are held at an angle.

Fluorescence: The number panels of the banknotes are printed in fluorescent ink. The banknotes also have dual coloured optical fibres. Both can be seen when the banknotes are exposed to ultra-violet lamp. The value can be seen only when the banknote is held horizontally and light allowed to fall on it; otherwise this feature appears only as a vertical band.

Micro letterings: This feature appears at different places on the banknotes and can be seen better under a magnifying glass. The numerals in both the number panels of the banknotes are in ascending size from left to right while the first three alpha-numeric characters prefix will remain constant in size.

Information about the above security features present in the Indian banknotes denomination-wise is also available on the website www. In addition to the security features listed above, banknotes issued after introduction of MG series have the year of printing on the reverse of the banknotes which is not present in the pre series.

The Mahatma Gandhi New Series banknotes have a sharp colour contrast scheme to facilitate identification by the partially visually challenged. There is an identification mark on the front side of each note which is in raised print intaglio and has different shapes for different denominations for e.

Further, in these denominations numerals are prominently displayed in the central area of the notes in raised print. Note: This mobile application does not authenticate a note as being either genuine or counterfeit. The processes and systems followed for production of Indian banknotes are at par with the best practices adopted globally. In line with the same, banknote quality is maintained well within the various tolerance parameters for dimension, placement of design, print features etc.

All banks are authorized to accept and exchange soiled banknotes for full value. All branches of commercial banks are authorised to adjudicate mutilated banknotes which are legal tender and pay value for these, in terms of the Reserve Bank of India Note Refund Amendment Rules, The details are available on our website at the following link: www.

Non-payable banknotes are retained by the receiving banks and sent to the Reserve Bank where they are destroyed. The presence or absence of a serial number or other specific feature is not a determining factor when assessing damaged banknotes for value under the RBI Note Refund Amendment Rules, Reserve Bank of India has been continuously making efforts to make good quality banknotes available to the members of public.

To help RBI and the banking system towards this objective, the members of public are requested to ensure the following:. All Bank notes including Mahatma Gandhi New series notes with writing or colour stains on them continue to be legal tender, provided they are decipherable. Such notes can be deposited or exchanged in any bank branch. However, a claim in respect of bank notes which carries any extrinsic words or visible representations intended to convey or capable of conveying any message of a political or religious character or furthering the interest of any person or entity will be rejected as per Reserve Bank of India Note Refund Rules, [As amended by Reserve Bank of India Note Refund Amendment Rules, ].

A suspected forged note, counterfeit note or fake note is any note which does not possess the characteristics of genuine Indian currency note.

A forged note can be identified on the basis of the security features which are present in a genuine Indian currency note. These features are easily identifiable by seeing, touching and tilting the note.

What are the legal provisions relating to printing and circulation of forged banknotes? Does possession of a forged note attract the punishment of fine or imprisonment?

Mere possession of a forged note does not attract punishment. Possession of any forged or counterfeit banknotes, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, is punishable under Section C of Indian Penal Code, What are the actions taken by the Reserve Bank of India to train general public to distinguish genuine banknotes from forged notes?

Which denominations of coins are currently in circulation? Can coins be issued only in these denominations? Coins in India are presently being issued in denominations of 50 paise, one rupee, two rupees, five rupees, ten rupees and twenty rupees. Coins up to 50 paise are called 'small coins' and coins of Rupee one and above are called 'Rupee Coins'.

Twenty five 25 paise coins have been withdrawn from circulation with effect from June 30, and are, therefore, no more legal tender. Coins of denominations below 25 paise were withdrawn from circulation much earlier. All other denominations of coins of various size, theme and design minted by Government of India under The Coinage Act, and issued by RBI for circulation from time to time, continue to remain legal tender. RBI has not prescribed any limit for coin deposits by customers with banks.

Banks are free to accept any amount of coins from their customers. The One Rupee notes issued under the Currency Ordinance, are legal tender and included in the expression Rupee coin for all the purposes of the Reserve Bank of India Act, Since the rupee coins issued by Government constitute the liabilities of the Government, one rupee Note is also liability of the Government of India.

For more details kindly see our Press Release issued in this regard which is available at the following link www. The Government of India is responsible for the designing and minting of coins in various denominations.

The Government of India decides on the quantity of coins to be minted on the basis of indent received from the Reserve Bank on yearly basis. The Reserve Bank has instructed the banks to accept coins for transactions and exchange at all their branches. The public can continue to accept these coins as legal tender in all their transactions without any hesitation.

Where can one complaint against non-acceptance of coins or exchange of notes and coins by Banks? The Government of India is the issuing authority of coins and supplies coins to the Reserve Bank on demand. The Reserve Bank puts the coins into circulation on behalf of the Central Government. In consultation with the Government of India, we work towards maintaining confidence in the currency by constantly endeavouring to enhance integrity of banknotes through new design and security features.

The function includes supplying and distributing adequate quantity of currency throughout the country and ensuring the quality of banknotes in circulation by continuous supply of clean notes and timely withdrawal of soiled notes.

This is achieved through a wide network of more than currency chests of commercial banks. Currency chests are extended arms of the Reserve Bank Issue Departments and are responsible for meeting the currency requirements of their respective regions.

According to this system, the Reserve Bank of India has to maintain assets of at least crore rupees all the times. Out of this crore, the cr rupee should in the form of Gold or gold bullion and rest 85 cr. After maintaining the Minimum reserve the RBI can print any number of currency notes as per the requirement of the economy. Although RBI has to take prior permission from the government. To ensure the confidence of the Indian currency holders that the currency held by them is a legal tender and they will receive the value of the currency held by them.

Through the MRS the RBI accelerate the economic growth of the country without increasing the rate of inflation in the economy. Due to its widespread benefits the Minimum Reserve System still continues in India. Sole purpose of the Minimum Reserve System is to maintain the money supply in the economy without increasing the inflation and maintain the confidence of the general public in the currency.

What are the main functions of Reserve Bank of India.