Facts About Currency in India.

The process of issuing paper currency was started in

the 18th century.Earlier, private banks such as-the

Bank of Bengal, the Bank of Bombay and the Bank of

Madras -first printed paper currency. The Paper Currency

Act of 1861 has given the monopoly to government of India

to print  currency.The government of India printed currency

until the Reserve Bank of India was established in 1935, which

then took up this responsibility. The Rs 5-note was the first

paper currency issued by  RBI in January 1938. It had the portrait

of George VI. Within the same year, currency  notes of Rs 10;

Rs 100; Rs 1,000 and Rs.10,000 were issued. In 1946, Rs 1,000

and Rs 10,000 notes were demonetised to curb unaccounted

money. These were then reintroduced in 1954 (this time Rs.5,000

note was also printed) only to be withdrawn in 1978 again.

At present, notes of Rs.10; Rs.100; Rs.500 and Rs.1,000 are

only printed. The printing of Rs.1, Rs.2 and Rs.5 has been

stopped as these have been coinised. However, the RBI has

the powers to print currency notes of up to Rs.10,000

denomination.Coins of up to Rs.1,000 denominations

can be minted.A Rupee coin(Rs.1 and above) can be used

to pay/settle any amount sum. However, 50 paise coin

cannot be used to pay/settle any amount above Rs.10.

R.B.I. of India has decided to withdraw from circulation

all bank notes issued prior to 2005, as they have  fewer

security  features as compared to banknotes printed after

2005. Banknotes printed before 2005 do not have the

year of printing on the reverse side and hence can be

easily distinguished.RBI has issued M.G.series 2005

bank notes in the denominations of 10, 20, 50, 100,

500 and 1000. These notes contain some additional

/new security features as compared to the 1996 MG

series. All banknotes issued before 2005 MG series

are called pre-2005 series bank notes.

Source:Collection.

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