History of Indian currency | Indian Rupee| Evaluation of India Currency |Demonetization.
Introduction Of Indian Currency:-
We all deal with money on regular basis but we do not much knoweldge about the indian currency notes?
Are we aware 0f symbols on them?
You might not know that currency notes are not actually made of paper, but made of cotton and cotton rags.
We are very close to the money, but we do not have much knowledge about money. There are some interesting facts about money that we do not have knowledge about it.so i want to tell you some interesting facts about money.
Note paper currency:-
Firstly Note paper currency were issued by 18th century by Bank of Bengal, Bank of Bombay, Bank of Madras. The government of india publish paper currency act in 1861.
The reserve bank of india was established on 1st april 1935 in accordance with the provisions of the Reserve bank of India Act 1934.
Though initially RBI was privately owned, it was nationalised in 1949. its central office is in mumbai where the governor of RBI sits.The current governor of the RBI is SHAKTIKANTA DAS.
RBI has 22 regional offices and most of them are located in states capitals. The reserve bank of india also has three fully owned subsidiaries:
- Deposit Insurance and Credit Guarantee Corporation of India (DICGC)
- National Housing Bank (NHB)
- Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
In 1935 RBI take the responsibility from government of india to printing note.The rs.5 note was the first paper currency is issued by RBI in 1938.It had the portrait of george VI within the same year,currency notes rs. 10,100,1000 and 10,000 were issued.
In 1946 rs.1000 and 10,000 notes were discontinued to curb unaccounted money. They were then reintroduced in 1954 (this time Rs.5000 note was also printed.only to be withdrawn in 1978 again.
According to the RBI act 1934,sec 22 RBI has the sole right to issue bank note of all denominations. RBI is responsible for the design production and management of the currency of India with goal of ensuring an adequate supply of clean and genuine notes.
Main function of RBI:-
- Reserve bank of india is the main monetary authority of the country. It formulates implements and monitors the monetary policy and thereby plays a key role in the maintaining price stability and ensuring adequate flow of credit to productive sectors.
- RBI is regulator and supervisor of the financial system in the country. It prescribes broad parameters of banking operations within which the country’s banking and financial system functions.
- It manage the foreign exchange of the country.
- Maintains banking accounts of all scheduled banks.
- issues and exchanges of destroys currency and coins not fit for circulation.
History of Indian COINS:-
Firstly coins were issued by government of india in 1906. The responsibility for coinage vests with the government of india on the basis of the coinage act,2011. RBI act as an agent of government which merely distributed the coins in the market.
- Small and rupee coins issued by government of india.
- Rupee one banknote issued by (finance secretary) government of india.
- Banknote above rupee one signed by RBI governor.
Determination of volumes and value of banknote to be printed:-
RBI based on the demand requirement indicates the volume and value of banknote to be printed each year to the govt which get finalized after mutual consultation.
The quantum of banknote to be printed depends on the following-
- Requirement for meeting the demand of banknote
- GDP growth
- Inflation rate
- Replacement of soiled and mutilated notes
- Reserve stock requirement etc.
Notes and coins production:-
- Notes are printed at 4 printing presses,located as- Nashik, Dewas, Mysore and salboni.
- coins are minted at 4 mints , located at- Mumbai, Noida, Kolkata, Hyderabad
Currency system in india-issuance and distribution:-
- RBI has selected branches of banks called Currency chests which facilitate the distribution of currency.
- They have been established with state bank of india,six associate banks,nationalized banks,private sector bank,a foreign bank,a state cooperative bank and a regional rural bank.
- The distribute notes and coins to other bank branches in their area.
Some facts about currency:-
- The process of issuing currency notes started in the 18th century in India. After the Paper Currency Act of 1861, the Government of India was given the monopoly to print its own currency.
- The current series of the banknotes which is used in Indian Currency is known as the Mahatma Gandhi series. It was introduced in 1996.
- The Security Printing and Minting Corporation of India Limited (SPMCIL) is a government-owned corporation which was established in 2006. It is responsible for printing the banknotes of India, postal stamps and other important government documents. Coins are also produced by SPMCIL. There are 4 presses, 4 mints, and 1 paper mill.
- Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), an RBI subsidiary, is also responsible for printing the currency notes. It has 2 presses in Salboni and Mysore respectively.
- After independence, Pakistani initially used Indian currency. They simply stamped the Indian currency with the label “Government of Pakistan” for using it exclusively in Pakistan. In 1948, Pakistan started printing its own currency.
- The ₹500 note was first introduced in 1987 and ₹1000 was first introduced in 2000. Both the notes were demonetised on November 8, 2016, after which new notes of ₹500 and ₹2000 rupees were introduced.
- Coins of Rs. 75, 100 and 1000 denominations were made first in 2010 for commemorative purposes. The coins were made in order to celebrate the 75 years of the Reserve Bank of India, 100 years of Rabindranath Tagore and 1000 years of Brihadeeswarar Temple.
- As per the Coinage Act of 2011, the RBI can issue the coins up to the denomination of ₹1000.
- There are total 17 languages present on the currency notes. Hindi and English are prominently displayed in the centre of the notes. Apart from Hindi and English, fifteen other languages are present at the back of the notes which are – Assamese, Bengali, Gujarati, Kannada, Kashmiri, Konkani, Malayalam, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Tamil, Telugu, and Urdu.
- The symbol of rupee “₹” was derived from the Devanagari letter “र” (Ra) and the Roman capital letter “R”. The letters are taken to signify the words “Rupiah” in Hindi and “Rupees” in English. So, the symbol appears meaningful to both Indian and International users. There is a parallel line drawn in the symbol in order to make it look like the tricolour of the flag of India.
- The symbol was designed by Udaya Kumar who is an Associate Professor and Head of Department of Design, IIT Guwahati. The design of the rupee symbol was approved by Ambika Soni. Udaya Kumar was awarded ₹250,000 for his efforts.
- The RBI has the authority to issue notes up to ₹10,000
- Only ₹1 notes are printed by the Central Government and are signed by the Finance Secretary. All the other currency notes are printed by the RBI.
Highlights indian coins-
- 50 Paisa coin– The indian fifty paisa (singular paisa) is a unit of currency equaling 1/2(half) of the indian rupee. The symmbol for paisa is p.
Indian 50 paisa coin
|Value||1⁄2 Indian rupee|
|Diameter||19 mm (0.75 in)|
|Thickness||1.5 mm (0.06 in)|
Stainless Steel (1988-present)
|Years of minting||1957–present|
|Mint marks||Mumbai = ♦
Mumbai Proof issues = B
Hyderabad = *
Noida = °
Kolkata = No mint-mark
|Obverse Design||State Emblem of India with country name.|
|Reverse Design||Face value and year flanked by National flower of India|
- One Rupee Coin– one rupee coin is an Indian coin worth one Indian rupee and is made up of hundred.
- paisa. Currently rupee coin is the smallest Indian coin in circulation. in 1992 ,one rupee coins are minted from stainless steel.
|Indian one rupee coin|
|Value||1 Indian rupee|
|Diameter||21.93 mm (0.86 in)|
|Thickness||1.45 mm (0.057 in)|
|Years of minting||1950–present|
|Mint marks||♦ = Mumbai
B = Mumbai Proof issue
* = Hyderabad
° = Noida
No mint-mark = Kolkata
- Two Rupee coins- Indian 2 rupee coin is a denomination of the Indian rupee. the 2 rupee coin was
- introduced in India in 1992. 2 rupee coin was in circulation in banknotes. The old 2 rupee coin was minted with cupronickel metal. The new 2rupee coin was minted in ferratic stainless steel.
|Indian two rupee coins|
|Composition||Ferritic stainless steel|
|Years of minting||1992 – present|
|Design||Lettering of “भारत” on left, “INDIA” on right, the year of mint and mint mark below, Lion capital with the lettering “सत्यमेव जयते” below it.|
- Five Rupee coin– The Indian 5 rupee coin is a denomination of the Indian rupee. The 5 rupee coin was the highest denominated coin until the minting of the rupee 10 in 2005.
The Lion Capital of Ashoka is minted on the obverse along with the denomination below. In some 5 rupee coins, the denomination alone was minted on the obverse and the Lion Capital minted on the reverse side. The coins also are minted with the face of Indira Gandhi in her assassination and Jawaharlal Nehru during his 100th birthday anniversary.
|Indian five rupee coin|
|Years of minting||1949 – present|
|Design||Lettering of “भारत” on left, “INDIA” on right, the year of mint and mint mark below, Lion capital with the lettering “सत्यमेव जयते” below it.|
|Design||5 notches with the ₹ signbelow it, and the number 5 below the ₹ sign.|
- Ten rupee coin– The Indian 10-rupee coin (₹10) is a denomination of the Indian rupee. The ₹10 coin is the highest-denomination coin minted in India since its introduction in 2005. The present ₹10 coin in circulation is from the 2011 design.
The first ₹10 coin minted in 2005 had a diameter of 27 mm and featured the lettering “भारत” and “INDIA” on the top, with Lion capitalwith ‘Satyameva Jayate’ in Hindi below at left, and the date of mint below it on the obverse. On the reverse of the coin it featured the “Four heads sharing a common body” – cross with a dot in each quadrant in the center, with the lettering “दस रुपये” and “TEN RUPEES” on the outer ring.
|Indian ten rupee coin|
|Composition||Outer ring – Aluminium Bronze
(Copper: 92%, Aluminium: 6%,Nickel: 2%)Center – Cupronickel
(copper: 75%, nickel: 25%)
|Years of minting||2005 – present|
- 100 rupee coin:– The Indian 100-rupee coin (₹100) is a denomination of the Indian rupee. The ₹100 coin is the highest-denomination coin minted in India since its introduction in December 2018. The 100-rupee coin is dedicated to former Prime Minister of India, Atal Bihari Vajpayee and it was released On 24 December 2018, a day before Vajpayee’s 94th birth anniversary. The coin was designed at the India Government Mint in Mumbai.
|Indian 100 rupee coin|
|Years of minting||2018|
Highlights of Indian currency note-
- One Rupee note- One Indian rupee note is made up of Hundred paisas. Currently, it is the smallest Indian banknote in circulation and the only one being issued by the Government of India, as all other banknotes in circulation are issued by the Reserve Bank of India.
|Indian one rupee note|
|Weight||90 GSM g|
|Paper type||100 per cent (Cotton) Rag Content|
|Design||Sagar Samrat oil rig|
- Two rupee note- Two Indian rupee note is the second smallest Indian note. It was introduced in 1943 and removed from circulation in 1995.
|India two rupee note|
|Years of printing||1943 to 1995|
|Design date||1943 and 1980|
- Five Rupee Note:– Five Indian rupee note is the second smallest Indian note in circulation. The Reserve Bank of India has introduced 5 rupees banknote in the Mahatma Gandhi Series since 1996.The printing of notes in the denominations of Rs 5, however, has been discontinued as these denominations have been coinised.
|Indian five rupee note|
|Years of printing||1996|
- Ten Rupee Note:- The Indian 10-rupee banknote (₹10) is a common denomination of the Indian rupee. The ₹10 note was one of the first notes introduced by the Reserve Bank of India as a part of the Mahatma Gandhi Series in 1996
The Reserve Bank of India issued ₹10 denomination banknotes in the Mahatma Gandhi (New) Series with motif of Sun Temple, Konark on the reverse, depicting the country’s cultural heritage. The base colour of the note is Chocolate brown. Dimension of the banknote will be 63mm x 123mm.
- Twenty Rupee note:– The Indian 20-rupee banknote (₹20) is a common denomination of the Indian rupee. The current ₹20 banknote in circulation is a part of the Mahatma Gandhi Series. The Reserve Bank introduced the ₹20 note in the Mahatma Gandhi Series in August 2001. Making it one
- Fifty Rupee Note- The (₹50) is a denomination of the Indian rupee. The present ₹50 banknote in circulation since 1996 is a part of the Mahatma Gandhi Series of banknotes.The ₹50 banknote denomination was first introduced by the Reserve Bank of India (RBI) in 1975 as a part of the Lion Capital Series, which had the Ashoka pillar on the banknote. It was replaced by a watermark of Mahatma Gandhi in the Mahatma Gandhi Series, in 1996.
On 10 November 2016, the Reserve Bank of India announced, a new redesigned ₹50 banknote was to be available as a part of the Mahatma Gandhi New Series. The note was officially announced on 18 August 2017 and now on circulation.
- 100 rupee note:- The Indian 100-rupee banknote (₹100) is a denomination of the Indian rupee. It has been in continuous production since Reserve Bank of India took over the functions of the controller of currency in India in 1935. The present ₹100 banknote in circulation is a part of the Mahatma Gandhi Series, which replaced the Lion Capital Series of banknotes in 1998.
On 10 November 2016, the Reserve Bank of India announced a new redesigned ₹100 banknote to be available as a part of the Mahatma Gandhi New Series.On 19 July 2018, the Reserve Bank of India unveiled the revised design of ₹100 banknote.The new note colored its base as a lavender with motif of “Rani ki vav” (Queen’s stepwell) on the reverse side. Located in Gujarat’s Patan, “Rani ki Vav” is a UNESCO World Heritage Site.
- 200 rupee note– On 25 August 2017, the Reserve Bank of India introduced a new ₹200 banknote in the Mahatma Gandhi (New) Series.₹200 banknotes of the previous series will continue to be legal tender. The new version of the note has a depiction of Sanchi Stupa on the reverse, depicting the country’s cultural heritage. The base color of the note is Bright Yellow. The dimensions of the banknote are measured at 146 mm x 66 mm.
The Reserve Bank of India announced that new 200-rupee banknotes would be in circulation from 25 August 2017 on the occasion of Ganesh Chaturthi.
|Indian 200 rupee note|
|Years of printing||25 August 2017– present|
- 500 Rupee Note- The Indian 500-rupee banknote (₹500) is a denomination of the Indian rupee. The current ₹500 banknote, in circulation since 10 November 2016, is a part of the Mahatma Gandhi New Series.
The previous banknotes of the Mahatma Gandhi Series, in circulation between October 1997 and November 2016, were demonetized on November 8, 2016. On 13 June 2017, The RBI will soon introduce new Rs. 500 notes, but the old ones will continue being legal tender.
|Indian 500 rupee note|
|Years of printing||10.November 2016 – present|
- 2000 Rupee Note:- The Indian 2000-rupee banknote (₹2000) is a denomination of the Indian rupee. It was released by the Reserve Bank of India (RBI) on 8 November 2016 after the demonetisation of ₹500 and ₹1000 banknotes and has been in circulation since 10 November 2016.It is a part of the Mahatma Gandhi New Series of banknotes with a completely new design.
|Indian 2000 rupee note|
|Years of printing||2016 – 2019|
Why can’t country print more money and get rich?
A lot of people have this misunderstanding that a country’s currency is backed a gold it holds.But,this is simply not true- any country can print as much money as they want, and they don’t need to have any gold to back their currency.
Any country can print the money as much as they want, there is no restriction on it.in recessionary time’s countries do resorts to printing money, in general we called it as “Quantitative Easing”
The main reason why country don’t print more money cause “INFLATION” in an economy, and if you print more money you can get hyper inflation.
After reading this line you think how does printing more money cause inflation? so i will explain you in the simply way of understanding. Do you remember our grandma us to say that “In our days, we use to buy lots of things with few bucks of money”.
suppose you have manufactured an i-pad and you want to sell it for 10 bucks, and no other people having it. Your friends are very much crazy to buy it. If your friend ‘X’ has 10 bucks with him, ‘Y’ has 15 bucks with him and ‘Z’ has 20 bucks with him.
As your 3 friends are ready to buy your product,then to whom you’ll sell? Either need to increase the production or else increase the price. In general, as, as the demand for your product is high you will raise the price to 15 bucks. ‘X’ will loose the offer, now only Y and Z have chance to buy, but now 2 people are demanding again you will raise the price from 15 to 20. Now only Z will buy it.
The main point you need to notice that the product which has to be sold for 10 but it sold for 20 bucks….It’s nothing but inflation…Example of hyperinflation country Zimbabwe, Germany.
Hope you Like This Article.
Thank You 😊