The Indian Currency System

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The present monetary system of India is based on Inconvertible Paper Currency and is managed by the RBI. The present currency system is based on minimum reserve system of note issue. It was adopted in 1957, under the minimum reserve system, minimum of gold and foreign securities to the extent of Rs. 200 Crore (of which gold should be of value Rs. 115 Crore) and the balance in rupee securities is maintained.

Some Important Points  you should know

• The symbol of India Rupee "" came into vague on 15th July 2010.
• The new symbol "" is an amalgamation of Devanagari "र" and the Roman "R" without the stem.
• The new symbol was designed by D. Udaya Kumar, a post graduate of IIT Bombay. 
• Though the symbol "" will not be printed or embossed on currency notes or coins, it would be included in the "Unicode Standard" and major scripts of the world to ensure that it is easily displaced and printed in the electronic and print media. 
• RBI working group on money supply headed by Y. V. Reddy recommended for dropping of post office saving deposits. Accordingly, there are now only three monetary aggregates. Those are M1, M2 and M3.
• The revised monetary measures are 
• M1 = Coins and Notes + Demand Deposits + Other Deposits with RBI
• M2 = M1 + Time liabilities proportion of Saving deposits with banks + Certificates of deposits issued by Banks + Term deposit maturing within a year.
• M3 = M2+Terms deposit with banks with maturity over 1 year + call / term borrowing of the banking system.
• Coins are minted at four places. Those are,
1. Mumbai
2. Kolkata
3. Hyderabad
4. Noida

Devaluation of Currency :

Devaluation of currency means reducing the value of a currency by the fiscal authorities, so as to make exports cheaper and imports costlier and overcome balance of payments deficit. In India, devaluation has been resorted to four times.

• First Devaluation : In June, 1949 (by 30.5%) 
• Finance Minister - Dr. John Mathai
• Second Devaluation : In June, 1966 (by 57%)
• Finance Minister - Sachindra Chaudhry)
• Third Devaluation : on 1st July 1991 (by 9%)
• Finance Minister - Dr. Manmohan Singh
• Fourth Devaluation : on 3rd July 1991 (by 11%)
• Finance Minister - Dr. Manmohan Singh

Printing of Securities and Minting in India

Security Press	Station	Related to
India Security Press (1992)	Nasik	Postal Material, Postal Stamps etc
Security Printing Press (1982)	Hyderabad	Union excise duty stamps
Currency Note Press (1928)	Nasik	Bank notes from Rs. 1 to Rs. 100
Bank Notes Press (1974)	Dewas	Bank Notes of Rs. 20, Rs. 50, Rs.100 and Rs. 500
Modernized Currency Notes Press (1995)	Mysore (kar) Salbani (Paschim Banga)	“
Security Paper (1967-68)	Hoshangabad	Banks and Currency Notes paper

Sudhanshu Chakraborthi

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