The Reserve Bank of India, or RBI, among other things, manage currency in India. Before 1935, the government of India had the responsibility of printing money. However, RBI was granted its role in currency management on the basis of the Reserve Bank of India Act in 1935. Specifically, section 22 of the RBI Act gives authority to the Reserve Bank to issue currency notes. The Reserve Bank of India has printing facilities throughout the country at Dewas, Mysore, and Salboni.
What is the Government’s role:
Although the RBI has the power to print Indian currency, the government still has the final say on a majority of the Reserve Bank’s actions.
- The government decides on the various denominations printed and the design of bank notes, including the security features.
- The Reserve Bank has the right to print currency notes of up to Rs 10,000. However, if the Reserve Bank wanted to print anything higher, the government would need to amend the Reserve Bank of India Act.
- When the Reserve Bank estimates the demand for banknotes each year, it must file a written request with government officials to sign off on before printing.
When making these final decisions, government officials rely heavily on advice from the Reserve Bank senior staff.
Denominations in circulation: The following denominations are now in circulation: 5, 10, 20, 50,100, 500 and 2000 notes. Along with the following coins: 50 paise, 1, 2, 5 and 10 Rupee.
What about Coins: While the Reserve Bank of India prints currency, the government of India directly handles the minting of coins. Coins are minted at the four India government mints at Alipore in South Kolkata, Saifabad in Hyderabad, Cherlapally in Hyderabad and Noida in Uttar Pradesh. Although the government handles minting coins, the Reserve Bank issues them for circulation.