What is the Indian currency called?
The Indian currency is called the Indian Rupee (INR) and the coins are called paise. One Rupee consists of 100 paise. The symbol of the Indian Rupee is `. The design resembles both the Devanagari letter "`" (ra) and the Latin capital letter "R", with a double horizontal line at the top.
Can banknotes and coins be issued only in these denominations?
Not necessarily. The Reserve Bank can also issue banknotes in the denominations of five thousand rupees and ten thousand rupees, or any other denomination that the Central Government may specify. However, there cannot be banknotes 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 in terms of The Coinage Act, 2011.
Demonetization of higher denomination banknotes.
` 1000 and ` 10000 banknotes, which were then in circulation were demonetized in January 1946, primarily to curb unaccounted money. The higher denomination banknotes in ` 1000, ` 5000 and ` 10000 were reintroduced in the year 1954, and these banknotes (` 1000, ` 5000 and ` 10000) were again demonetized in January 1978.
What is legal tender?
The coins issued under the authority of Section 6 of The Coinage Act, 2011, shall be legal tender in payment or on account i.e. provided that a coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in its
case: - (a) coin of any denomination not lower than one rupee shall be legal tender for any sum, (b) half rupee coin shall be legal tender for any sum not exceeding ten rupees,
Every banknote issued by Reserve Bank of India (` 2, ` 5, ` 10, ` 20, ` 50, ` 100, ` 500 and ` 1000) shall be legal tender at any place in India in payment or on account for the amount expressed therein, and shall be guaranteed by the Central Government, subject to provisions of sub-section (2) Section 26 of RBI Act, 1934.
What is the meaning of "I promise to pay" clause?
As per Section 26 of Reserve Bank of India Act, 1934, the Bank is liable to pay the value of banknote. This is payable on demand by RBI, being the issuer. The Bank's obligation to pay the value of banknote does not arise out of a contract but out of statutory provisions.
The promissory clause printed on the banknotes i.e., "I promise to pay the bearer the sum of Rupees …is a statement which means that the banknote is a legal tender for the specified amount. The obligation on the part of the Bank is to exchange a banknote with bank notes of lower value or other coins which are legal tender under the Indian Coinage Act, 2011, of an equivalent amount.
Why is One Rupee liability of the Government of India?
The One Rupee notes issued under the Currency Ordinance, 1940 are also legal tender and included in the expression Rupee coin for all the purposes of the Reserve Bank of India Act, 1934. Since the rupee coins issued by Government constitute the liabilities of the Government, one rupee is also liability of the Government of India.
Who decides on the figure to be printed on a new note?
The Government of India in consultation with the Reserve Bank of India decided on the design of banknotes.
What was the highest denomination note ever printed?
The highest denomination note ever printed by the Reserve Bank of India was the ` 10000 note in 1938 and again in 1954. These notes were demonetized in 1946 and again in 1978.
What is currency paper made of?
Currency paper is composed of cotton and cotton rag.
What is a "star series" banknote?
Fresh banknotes issued by Reserve Bank of India till August 2006 were serially numbered. Each of these banknote bears a distinctive serial number along with a prefix consisting of numerals and letter/s. The banknotes are issued in packets containing 100 pieces.
The Bank has also adopted the "STAR series" numbering system for replacement of defectively printed banknotes. The Star series banknotes are exactly similar to the existing Mahatma Gandhi Series banknotes, but have an additional character viz., a *(star) in the number panel in the space between the prefix and the number as indicated below:
What is on a banknote to help visually challenged people identify the different denominations?
Each denomination is a different size; the greater the value the larger the note. So a `1000 note is larger than a `10 note and so on. There is an identification mark on the left hand side of each note on the front side which is in raised print (intaglio) and has different shapes for different denominations for eg. Diamond for `1000, circle for ` 500, triangle for `100, square for `50, rectangle for `20 and none for `10. Further, the denomination numerals are prominently displayed in the central area of the notes in raised print.
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