Short Note – Indian Currency System

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



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Team ExamPundit

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