{"id":3440,"date":"2020-03-18T09:57:25","date_gmt":"2020-03-18T09:57:25","guid":{"rendered":"https:\/\/www.ixambee.com\/blog\/?p=3440"},"modified":"2021-02-11T12:43:44","modified_gmt":"2021-02-11T07:13:44","slug":"indian-currency-issuing-policies-in-india-part-2-banking-awareness","status":"publish","type":"post","link":"https:\/\/blog.ixambee.com\/indian-currency-issuing-policies-in-india-part-2-banking-awareness","title":{"rendered":"Indian Currency issuing policies in India (Part 2)- Banking Awareness"},"content":{"rendered":"\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In my previous article of Indian currency issuing polices in India, I have explained several policies regarding note issuing in India. I have also described about the History of Indian currency, some important features of Indian coins and methods of Issuing currency. In the continuation of my previous article, today I am going to explain about the currency chest, some facts Indian rupees and the demonetization history. This topic is essential from exam point of view. If you are going to write banking exams like IBPS PO, IBPS Clerk, SBI PO, RBI Assistant etc. in future, this topic is a must to cover, as questions from this are generally asked in the exam under the General Awareness section. Let\u2019s understand each topic one by one.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Currency Chest:<\/strong><\/h2>\n\n\n\n<p>Currency chest is used to facilitate storage and circulation\nof notes and coins. Reserve bank of India select branches of Commercial banks\nto establish currency chest at its branches. This act as a repository (of notes\nand coins) stored on the behalf of RBI. Right now, there are 4422 currency\nchests in India. \u00a0Stocks and notes stored\nin these currency chest varies as per the demand or needs of the respective\nareas. There are some branches which are used to keep small coins by the Reserve\nBank of India are known as <strong>Small Coin\ndeposits.<\/strong> <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Important Provisions\nregarding the issue of currency noted by the Reserve bank of India under RBI\nAct, 1934:<\/strong><\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li>Notes issued by the RBI are legal tender and are guaranteed by the Central government. <\/li><li>The Central Government can demonetize notes of any denomination that are issued by the RBI.<\/li><li>The design as well as the material of the notes issued by the RBI should have an approval of the central government.<\/li><li>The issuing department can issue notes from rupees to higher denominations. <\/li><li>The Central Government can circulate rupees coins through the Reserve bank of India only.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Legal Tender:<\/strong><\/h2>\n\n\n\n<p>All the notes that are issued by the RBI and guaranteed by\nthe central government are legal tender of the country. One rupee note and\ncoins are legal tenders foe unlimited amount whereas 50 paisa coins are legal\ntender foe the sum not exceeds INR 10. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The coins that were earlier issued but banned\nsince <strong>June 30, 2011<\/strong> are <strong>1 paisa, 2 paisa, 5 paisa, 10 paisa, 20 paisa\nand 25 paisa. <\/strong><\/li><li>Rupee 1, 2 and 5 coins are currently named as Rupee\ncoins. <\/li><li>RBI decides the allowed amount of notes to be printed\nwhereas the Central government decides the quantity of the coins to be minted. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Commemorative Coins:<\/strong><\/h2>\n\n\n\n<p>Commemorative coins that is issued by the RBI from time to time\nis not a legal tender. Coins of denomination of INR 50 INR 75 INR 1000 have\nbeen issued in the past. The first commemorative coin printed was to mourn the\ndeath of Pandit Jawahar Lal Nehru in 1964. He was the first prime minister of\nIndia.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the Demonetization of rupee<\/strong>:<\/h2>\n\n\n\n<p>On November 08, 2016, PM Narendra Singh Modi, announced that\nINR 500 and INR 1000 will no longer will be the legal tender of the country. This\nwas 86% of the entire currency that was in circulation. The amount of demonetized\nnotes were 15.44 lakh crores. This was the third demonetization after the\nJanuary 12, 1946 after World War II. At that time the highest currency that was\ndemonetized was INR 10,000. The second time demonetization took place was on January\n16, 1978. It was done by <strong>Shri Morarji\nDesai.<\/strong> The note that demonetized was again the 10,000 rupee note that was\nreissued by RBI in 1954.<\/p>\n\n\n\n<p>The highest denomination that can be issued as per the RBI Act 1934 is 10,000. The highest denomination note evet by the Reserve Bank of India was 10,000 rupee note in 1938. <\/p>\n\n\n\n<p>This was it from this topic, for more articles like this, keep visiting this place.<\/p>\n\n\n\n<p><strong>Related articles:<\/strong><\/p>\n\n\n\n<p><strong><a aria-label=\"Indian Currency issuing policies in India (Part 1)- Banking Awareness (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/blog\/indian-currency-issuing-policies-in-india-part-1-banking-awareness\" target=\"_blank\">Indian Currency issuing policies in India (Part 1)<\/a><\/strong><\/p>\n\n\n\n<p><strong><a aria-label=\"History of Banking (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/blog\/a-brief-history-of-banking-in-india\" target=\"_blank\">History of Banking<\/a><\/strong><\/p>\n\n\n\n<p><strong><a aria-label=\"Types of banks with classification  (opens in a new tab)\" rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/blog\/banks-and-its-classification-part-1\" target=\"_blank\">Types of banks with classification <\/a><\/strong><\/p>\n\n\n\n<p><em>Get Free\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\" target=\"_blank\">Online Test Series<\/a><em>,\u00a0GK updates in form of\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/beepedia-gk-updates-capsule\" target=\"_blank\">Beepedia<\/a><em>,\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/beebooster-ga-updates-capsule\" target=\"_blank\">BeeBooster<\/a><em>,\u00a0\u00a0as well as latest updates for\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/bank-po-exams\" target=\"_blank\">Bank PO<\/a><em>,\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/bank-clerk-exams\" target=\"_blank\">Bank Clerk<\/a><em>,\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/ssc-exams\" target=\"_blank\">SSC<\/a><em>,\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/rbi-exams\" target=\"_blank\">RBI<\/a><em>,\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/nabard-exams\" target=\"_blank\">NABARD\u00a0<\/a><em>and Other\u00a0<\/em><a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/exams\" target=\"_blank\">Government Jobs.<\/a><\/p>\n <span style=\"position:absolute;visibility: collapse;\"><a href=\"https:\/\/credit-n.ru\/zaymyi-next.html\">\u0437\u0430\u0439\u043c \u0434\u043e 80 \u043b\u0435\u0442<\/a><a href=\"https:\/\/credit-n.ru\">\u0437\u0430\u0439\u043c \u043e\u043d\u043b\u0430\u0439\u043d \u043d\u0430 \u0437\u043e\u043b\u043e\u0442\u0443\u044e \u043a\u043e\u0440\u043e\u043d\u0443<\/a><a href=\"https:\/\/credit-n.ru\/zaymyi.html\">\u0433\u0434\u0435 \u0432\u0437\u044f\u0442\u044c \u0437\u0430\u0439\u043c \u043d\u0430 \u044f\u043d\u0434\u0435\u043a\u0441 \u0434\u0435\u043d\u044c\u0433\u0438<\/a><\/span>","protected":false},"excerpt":{"rendered":"<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In my previous article of Indian currency issuing polices in India, I have explained several policies regarding note issuing in India. I have also described about the History of Indian currency, some important features of Indian coins and methods of Issuing currency. In the continuation of my previous article, today I am going to explain [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":3441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Indian Currency Note issuing policies in India (Part 1)- Banking Awareness<\/title>\n<meta name=\"description\" content=\"Bank Exams: Read here About the Details of Indian currency, About Currency Chest, Demonetization of Rupee and more\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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