KNOW BANKING AWARENESS PART 2

Indian Currency
The Indian currency is called the Indian Rupee (INR) and the coins are called paise. One Rupee consists of 100 paise.
The Reserve Bank manages currency in India. The Government, on the advice of the Reserve Bank, decides on the
various denominations.
• The Reserve Bank can also issue notes in the denominations of one thousand rupees, five thousand rupees and
ten thousand rupees, or any other denomination that the Central Government may specify.
• There cannot, though, be notes in denominations higher than ten thousand rupees in terms of the current
provisions of the Reserve Bank of India Act, 1934. Coins can be issued up to the denomination of Rs.1000.
Soiled and 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 notes can be tendered at all bank branches for and exchange obtained.
• Soiled or mutilated notes are fully payable against such notes. Payment of exchange value of mutilated
notes is governed by the RBI under refund Rules, 1975.
• In order to increase the life of currency notes, Reserve Bank of India (RBI) issued Clean Note Policy in 2001.
These Rules have been framed under Section 28 of the Reserve Bank of India Act, 1934. The public can get value for
these notes as laid down in the Rules, after adjudication. Currently, provisions exist for paying either full, half or no
value as far as notes in the denomination for Rs.10 and above are concerned; as regards Re.1, Rs.2 & Rs.5, a tenderer
can get either full or no value depending upon the condition of the note.
Coin Minting:
 The Union Government has the sole right to mint the coins and one rupee note. The responsibility for coinage comes
under the Coinage Act, 1906 which is amended from time to time. The designing and minting of coins in various
denominations is also the responsibility of the Government of India. The coins are issued for circulation only through
the Reserve Bank in terms of the RBI Act.
Coins are minted at the four India Government Mints.
1. Mumbai,
2. Alipore (Kolkata),
3. Saifabad (Hyderabad),Cherlapally (Hyderabad)
4. NOIDA (UP).
Currency Notes:
The design of banknotes is approved by the central government, on the recommendation of the central board of the
Reserve Bank of India. The current series of banknotes (which began in 1996) is known as the Mahatma Gandhi
series. Banknotes are issued in the denominations of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.2000.
1. Currency notes are printed at the Currency Note Press in Nashik,
2. Bank Note Press in Dewas,
3. Bharatiya Reserve Bank Note Mudran (P) Ltd at Salboni and Mysore and at
4. The Watermark Paper Manufacturing Mill in Hoshangabad.
Demonetisation in India
The largest note ever printed by the Reserve Bank of India was Rs.10000 which was introduced in 1938 by
the British India government and subsequently again by Independent India in 1954.
• The notes introduced in 1954 were Rs.500, Rs.1000, Rs.5000 and Rs.10000.
• These notes were withdrawn in 1946 by the RBI under the British Indian Government to curb the
black money menace in India