Indian currency notes
1) Although the 'Reserve Bank Act 1934' currently exists for Indian currency notes, the circulation of notes as a legal entity begins with the Paper Currency Act 1861. Although coins were circulated by various rulers in the late 2018s, paper notes were introduced only by the British. Now the way the central bank issues notes is not what it used to be. There were as many banknotes in circulation as there were banks. Some banks like Bank of India in the 18th century had issued notes.
2) The notes issued by the Bank of Calcutta, of which the East India Company was a shareholder, were issued in 1806. The following timeline shows, for example, a 10 rupee note from Bank of Calcutta (hereinafter referred to as Bank of Bengal). His notes also came into circulation after the establishment of the Bank of Bombay in 1840 and the Bank of Madras in 1843.
3) After 1858, India was ruled by the Queen. Just as the Indian Coin Act was amended in 1862 for coins, so was the Paper Currency Act for notes in 1861. Under this Act, the Central Government took over the monopoly of printing notes.
4) Other banks were banned from printing notes. Bank of Bengal, Bank of Bombay and Bank of Madras now became agents for the circulation of notes printed by the Government of India.
5) The timeline shows, for example, a Government of India 10 rupee note. The note reads 'Government of India'.
6) In 1861, Rs. 10, 20, 50, 100, 1,000 notes were introduced. These notes were printed at the Leverstock Mill in England
7) The picture of the Queen was deleted from the notes printed from 1867. A Rs 5 note was disputed in the challan. The Rs 10,000 note was introduced in 1899 and the Rs 500 note after 1907.
8) Due to shortage of metals during the First World War, printing of 1 rupee note started on 30th November, 1917. This is the first 1 rupee note in the history of India. In 1918, Rs. 2.5 notes were also printed. These notes were printed under the 1861 Act. Also on these notes was a portrait of King George V.
9) From 1923, a replica of King George V began to be printed on all the notes of 5, 10, 20, 50, 100, 500, 1,000, 10,000 rupees. These replicas were already on Rs 1 and Rs 2.5 notes. After 1926, however, the printing of Rs. 1 and Rs. 2.5 notes ceased.
10) The Reserve Bank was established in 1935 under the 1934 Act. According to the Reserve Bank Act, the right to print notes was vested in the Reserve Bank (the coin was retained by the government). The Act of 1861 was automatically repealed. Reserve Bank notes have been in circulation since 1938. In January 1938, the first Rs. 5 note was issued by the Reserve Bank. This was followed by Rs 10, Rs 100, Rs 1,000 and Rs 10,000 notes. The 2 rupee note was also introduced in 1943. The timeline shows, for example, a Rs. 10 note from the Reserve Bank of 1938. Earlier notes had 'Government of India' written on them. This note is written by the Reserve Bank of India. The note features a portrait of King George VI. The note is signed by James Taylor, the second governor of the Reserve Bank. Osborne Smith, the first governor of the Reserve Bank, but his signature does not appear on any of the notes as the Reserve Bank did not print any notes during his tenure.
11) In 1940, printing of 1 rupee note started again. But as mentioned earlier, this note does not fall under the category of 'currency note' but under the category of 'coin'.
12) The first demonetization of notes took place in 1946 during the Second World War. On 12 January 1946, a High Denomination Bank Notes (demonetization) Ordinance, 1946, was enacted to remove notes with large denominations as legal tender from midnight on 12 January. 'A large denomination note is Rs.500. And notes of higher value. During this period, Rs.500, Rs.1,000 and Rs.10,000 were a few notes before the establishment of the Reserve Bank. Rs.1000 and Rs.10,000 notes were introduced by the Reserve Bank from June 1938. All these notes were devalued on 12 January 1946. During this period c. D. Deshmukh was the Governor of the Reserve Bank, while Wavell was the Viceroy and Governor General. During World War II, the profits made by merchants were supplied in large denominations in the form of black money. The purpose of the monetization was to increase the tax revenue.
13) The symbols used by the Government of India in coins in 1950 were also picked up by the Reserve Bank. The lion-faced replica on the Ashoka Pillar replaced the image of the king. The Reserve Bank introduced new Rs 2, Rs 5, Rs 10 and Rs 100 notes. A sample Rs 10 note is shown in the timeline.
14) Hindi language started being used on notes printed in 1953.
15) In 1954, large denomination notes were reintroduced. The Reserve Bank has now introduced Rs 1,000, Rs 5,000 and Rs 10,000 notes.
16) In 1956, the minimum funding method was adopted instead of the standard funding method. This concept is explained below.
17) Mint was established in 1803 at Hyderabad under the jurisdiction of Nizam. In 1918, the State of Hyderabad started printing its own currency notes. The coins of the state of Hyderabad were called 'Hali Sicca' and the notes were called 'Osmania Sicca'. These notes were worth Rs 1, Rs 5, Rs 10, Rs 100, Rs 1,000.
19) In 1978, another denomination of notes took place. The High Denomination Bank Notes (Demonetisation) Ordinance 1978, dated January 16, 1978, issued 'notes with large denominations' as legal tender from midnight on January 16. The large denomination notes were worth Rs 1,000, Rs 5,000 and Rs 10,000. These notes, which came into circulation in 1954, were printed in 1978. Hirubhai Patel was the Finance Minister. Morarji Desai of the Janata Dal was the Prime Minister. The purpose of monetization was to get black money out. The ordinance was enacted into law on March 30, 1978 after parliamentary approval.
20) The appearance of notes changed in 1980. Examples of Indian science and art like Aryabhata satellite on Rs 2 note, oil refining project on Rs 1 note, tractor on Rs 5 note, peacock on Rs 10 and Rs 20 notes, wheel in Konark temple etc. started to be printed.
21) The Rs.500 note came into circulation in October 1987 due to the recovery in the economy. The Reserve Bank has not printed a Rs. 500 note since its inception in 1935. A replica of Mahatma Gandhi was printed on this note along with other symbols.
22) The Government of India stopped printing 1 rupee notes in 1994. In 1995, the Reserve Bank stopped printing Rs 2 and Rs 5 notes. The transaction value of these notes is very low. Their average lifespan is also short. The cost of producing these notes is high. Therefore, printing of these notes was stopped. The printing of Rs 5 notes resumed in 2001, but was stopped again in 2005.
23) From 1996 to 2001, 'Mahatma Gandhi Series' notes with replicas of Mahatma Gandhi were introduced. In 1996, notes of Rs 10 and Rs 100, Rs 50 in 1997, Rs 500 in 2000, Rs 5 and Rs 20 in 2001 came from the Mahatma Gandhi series.
24) The above mentioned dematerialisation act of 1978 was slightly amended in 1998 and printing of Rs.1000 notes was resumed. Etc. C. In 2000, a Rs. 1,000 note based on the Mahatma Gandhi series was introduced. (2011The 'R' sign later appeared on the printed notes.
25) On 22 January 2014, the Reserve Bank issued Rs. 500 and Rs. Announced the withdrawal and replacement of notes printed before 2005. The Reserve Bank has given Rs. And decided to exchange Rs. 1,000 notes. Since notes printed after 2005 have some security features, real notes can be easily distinguished. At the international level, in developed countries, a series of notes are not in circulation at the same time. Replacing high denomination notes eliminates black money stored in the form of old notes.
26) Monetization of 2016 - i) On November 8, 2016, the Government of India, through Notification No. 3407 and Notification No. 2652 of the Gazette, issued notes with large denominations (Rs. 500 and Rs. 1,000 denominations) as legal tender from midnight on November 8. The Rs 500 and Rs 1,000 notes, which came into circulation after 1987 and 2000, respectively, were finally devalued in 2016. The purpose of monetization was to get black money out. At the time of this monetization, Dr. Urjit Patel was the Governor of the Reserve Bank, Arun Jaitley was the Finance Minister and Narendra Modi was the Prime Minister. The decision to withdraw currency under section 26-2 of the Reserve Bank Act 1934 is taken by the Government of India in consultation with the Central Board of Directors of the Reserve Bank and published in the Gazette.
The gadget gives a comparative table of the monetization of 1946, 1978 and 2016. From this , you can understand the monetization of 2016. Following the announcement of the monetization on November 8, 2016, a public holiday was declared for the banks on November 9, 2016.
i) Even if certain notes were withdrawn from circulation, the facility of obtaining legal tender notes of the same denomination was available at the time of each denomination by exchanging these notes at the Reserve Bank, RBI offices and banks (and bank branches) as directed by the Reserve Bank
. ii) There was no limit on how much money could be deposited in the account in the form of old notes at the time of monetization. But naturally, during the demonetization period of 2016, depositors who deposited more than Rs 2,50,000 in savings accounts or more than Rs 12,50,000 in current accounts came on the radar of the tax department.
iii) Under the 1946 ordinance, the government had the power to impose a fine or imprisonment for 3 years or both for giving false information. The 1978 ordinance had a similar provision. The ordinance was enacted on March 30, 1978. The instructions in the gazette of November 8, 2016 alone were not enough for 2016 monetization. Therefore, on December 30, 2016, the Central Government issued the Specified Bank Notes (Cessation of Liabilities) Ordinance. This ordinance was enacted into law on 27 February 2017.
According to this Act,
a) A person who provides false information at the time of demonetization will have to pay a penalty of up to Rs.
b) Anyone found with printed notes after 31st December 2016 will have to pay a penalty of Rs.10,000 or a penalty of 5 times the value of the notes found, whichever is higher. A maximum of 10 printed notes are allowed. Researchers are also allowed to carry 25 printed notes.
27)Rs 2,000 notes were issued by the Reserve Bank on November 8, 2016. These new notes came into circulation after 10 November 2016. The notes based on the Mahatma Gandhi series had a reflective image of Mahatma Gandhi's face (the face looking to the left). This image on the new notes is flattened (looking to the right)
Face) is done. The image was taken from a photograph taken by Mahatma Gandhi during his visit to England in 1946. The new Rs 500 note is gray in stone with the image of the Red Fort printed on the back. The new Rs 2,000 note is in magenta color with the image of Mangalayana printed on the back. The logo of Swachh Bharat Mission is also displayed on the new notes.
28) On 18th August 2017, the Reserve Bank announced the introduction of a new Rs. 50 note. The new Rs 50 note is in fluorescent blue color with the image of Shilaratha at Hampi printed on the back.
29) On 24th August 2017, the Reserve Bank announced the introduction of Rs. 200 notes. The Rs 200 note is bright yellow with the image of Sanchi Stupa printed on the back. '200 rupee note' was not a currency till now. This is the first time that the Reserve Bank has printed a Rs 200 note. The Reynolds series was conceived by the expert Reynolds. If 1-2-5 is considered as Reynolds series, then 1, 2, 5, 10, 20, 50, 100, 200, 500, 1000, 2000, 5000 .......... series is obtained. The RBI has printed 2,000 notes, creating a series of 1 to 2,000 notes. The Rs 200 note was the remaining number. Now the series 1 to 2,000 is complete. (A new Rs 1,000 note is also expected to arrive.)
30) On January 5, 2018, the Reserve Bank announced the introduction of a new Rs 10 note. The new Rs 10 note is chocolate, brown in color with the image of the wheel of the Sun Temple in Konark on the back.
31) On 19 July 2018, the Reserve Bank announced the introduction of a new Rs. 100 note. The new Rs 100 note is lavender in color with the image of Rani Ki Vav printed on the back.
32) On April 26, 2019, the Reserve Bank announced the introduction of a new Rs. 20 note. The new note is greenish yellow with the image of Ellora Cave printed on the back.
33) Paper Currency demonetization 1) Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500, Rs 2,000 notes are legal tender under the Reserve Bank Act 1934, Section 26 (legal tenders). 1 rupee note is legal tender under Indian Coin Act, 2011. There is no limit on the maximum amount of rupees that can be transacted through all notes of Rs 2 to Rs 2,000.
i) Under Section 24, the Reserve Bank may print notes up to a maximum value of Rs. 10,000.
ii) Although Rs. 2 and Rs. 5 notes are legal tender, their printing is currently closed.
34)The Central Board of Directors of the Reserve Bank makes recommendations regarding the design of notes as per Section 25 and the Central Government gives final approval to the design of notes taking into consideration these recommendations.
Thanks for this information
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