Who decides which figure will be on Currency Notes?
Section 25 of the RBI Act states that the design, form, and material of banknotes must be approved by the Central Government. This is after the Central Board’s recommendations are considered.
Is there any country which uses Indian Deities images on currency notes?
Yes, Indonesia uses the image of Lord Ganesh on their currency notes.
Although merely changing the image of the currency not will not improve the Indian economy.
The economy needs to increase production, increase investment in fixed capital, improve the supply chain in order to improve economy.
Are the banknotes issued by RBI backed by any assets such as gold?
All banknotes issued by RBI are backed by assets such as gold, Government Securities and Foreign Currency Assets, as defined in Section 33 of RBI Act, 1934.
Who decides on the volume and value of banknotes to be printed and on what basis?
The volume and value of banknotes to be printed in a year depends on various factors such as (i) the expected increase in Notes in Circulation (NIC) to meet the growing needs of the public and (ii) the need for replacing soiled/mutilated notes so as to ensure that only good quality notes are in circulation.
What is currency paper made up of?
The paper currently being used for printing of banknotes in India is made by using 100% cotton.
How many languages appear in the language panel of Indian banknotes?
Fifteen languages are appearing in the language panel of banknotes in addition to Hindi prominently displayed in the centre of the note and English on the reverse of the banknote.
Is it possible to have two or more banknotes with the same serial number?
Yes, Although it is possible to have two or more banknotes with the same serial number, but they would either have a different Inset Letter or year of printing or signature of a different Governor of RBI.
What is the meaning of “I promise to pay” clause on the banknotes?
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 promissory clause printed on the banknotes i.e., “I promise to pay the bearer the sum of Rupees …” denotes the obligation on the part of the Bank towards the holder of the bank note.
Although deity image can be included in the notes this will not improve the Indian economy.
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