Short Note – Indian Currency System

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7 years ago

Hello and welcome to ExamPundit. Today we have prepared a short note on Indian Currency, Notes and information about them. It is very important for IBPS SBI and other Banking PO and Clerical Exams and Interviews.

The Indian rupee symbol ‘

‘ (officially adopted in 2010)
is derived from the Devanagari consonant “र”
(ra) and the Latin letter “R”. The first series of coins with the
rupee symbol was launched on 8 July 2011. Currency paper is composed of cotton
and cotton rag.

RBI issues all the bank notes except Rupees 1 Notes. These notes are issued by Ministry of Finance.

Recently RBI launched a website Paisa-Bolta-Hai to raise
awareness of counterfeit or fake currency among users of the Indian Rupees and
also the citizen of India.

The
main security features of current banknotes are:

Watermark – White
side panel of notes has Mahatma Gandhi watermark.
Security thread –
All notes have a silver or green security band with inscriptions (visible when
held against light) of Bharat in Hindi and “RBI” in English.
Latent image – On
notes of denominations of Rs.20 and upwards, a vertical band on the right side
of the Mahatma Gandhi’s portrait contains a latent image showing the respective
denominational value numerally (visible only when the note is held horizontally
at eye level).
Micro lettering –
Numeral denominational value is visible under magnifying glass between security
thread and latent image.
Intaglio – On
notes with denominations of INR5 and upwards the portrait of Mahatma Gandhi,
the Reserve Bank seal, guarantee and promise clause, Ashoka Pillar Emblem on
the left and the RBI Governor’s signature are printed in intaglio (raised
print).
Identification mark
– On the left of the watermark window, different shapes are printed for various
denominations INR20: vertical rectangle, INR50: square, INR100: triangle,
INR500: circle, INR1,000: diamond). This also helps the visually impaired to
identify the denomination.
Fluorescence –
Number panels glow under ultraviolet light.
Optically variable
ink – Notes of Rs.500 and Rs.1,000 denominations have their numerals
printed in optically variable ink. The number appears green when the note is
held flat, but changes to blue when viewed at an angle.
See-through register
– Floral designs printed on the front and the back of the note coincide and
perfectly overlap each other when viewed against light.
EURion constellation
– A pattern of symbols found on the banknote helps software detect the presence
of a banknote in a digital image, preventing its reproduction with devices such
as colour photocopiers.

NOTE: The EURion constellation (also known as Omron rings) is a pattern of symbols incorporated into a number of banknote designs worldwide since about 1996. It is added to help imaging software detect the presence of a banknote in a digital image.

DIFFERENT
KINDS OF NOTES

Genuine Notes:
Such notes must have a water mark of Asoka Pillar, security thread and serial
number along with alphabet. They have distinctive colours.
Soiled notes: The
currency note which has become dirty due to its use or may be in 2 pieces. No
portion of such note should be missing. These notes are accepted for exchange
without any restrictions by the banks.
Mutilated notes:
Such currency notes that are composed of various pieces or they are cut notes
of which some portion is missing. These notes are exchanged only by the
currency chest branches of banks.
Single/double
numbered notes: Notes up to Rs.5 are single numbered while the notes above
Rs.5 are double numbered notes.

RBI’S CLEAN NOTE POLICY

RBI had announced ‘Clean Note Policy’ in January, 1999.
For withdrawing soiled notes from circulation and pumping
fresh notes into circulation, the RBI introduced various changes in the system
and procedures related to currency management which include mechanization of
the currency verification and processing as also shredding and briquetting for
destruction of soiled and mutilated notes.

Rules and
Instructions Issued by RBI:

Not to staple bank notes
To Tender soiled notes to the Reserve Bank in unstapled
condition,
To use bands instead of staple pins,
To issue only clean notes to members of public,
To open select currency chest branches on Sundays to provide
exchange facility to members of public all over the county,
To provide unrestricted facility for exchange of soiled and
mutilated notes to members of public.
Banks should sort notes into re-issuables and non-issuables,
and issue only clean notes to public.
Soiled notes in unstapled condition may be tendered at RBI
in inward remittances through Currency Chests
Banks should stop writing of any kind on watermark window of
bank notes.

Coins of 25
Paise and Below – Withdrawal

Govt, of India has decided to withdraw the coins of 25 paise
and below from circulation from June 30, 2011. Coins of 25 paise and below are
not accepted for exchange at the bank branches from July 1, 2011 onward.

Withdrawal
of Pre-2005 Notes:

Reserve Bank of India decided to withdraw from circulation
all banknotes issued prior to 2005 as they have fewer security features as
compared to banknotes printed after 2005.
The withdrawal exercise is in conformity with the standard
international practice of not having multiple series of notes in circulation at
the same time.
The RBI has already been withdrawing these banknotes in a
routine manner through banks.
It is estimated that the volume of such banknotes (pre-2005)
in circulation is not significant enough to impact the general public in a
large way and the members of public may exchange the pre-2005 series banknotes
at bank branches at their convenience.
The deadline for exchanging pre-2005 currency notes of
various denominations, including Rs.500 and Rs.1,000, has been extended by
another six months till June 30, 2015.

Source and Copyright: Wikipedia, RBI, The Hindu, Economic Times

Regards

Team ExamPundit

This post was last modified on November 27, 2017 9:01 am