Sunday, October 2, 2016

Why RBI Can't Print 1 Rupee Note?

Posted by Sharath
Did you observe anytime that on One Rupee Note it will be written as 'Government of India' and on other notes it will be like 'Reserve Bank of India'.  Of course now these One Rupee Notes are not circulating in market but in 2014/15 GoI restarted One Rupee Notes. 

Lets read why RBI is not having the authority to print the One Rupee Note: 

According to RBI Act: (Excerpt from RBI act) 
24. Denominations of notes.
(1) Subject to the provisions of sub-section (2), bank notes shall be of the denominational values of two rupees, five rupees, ten rupees, twenty rupees, fifty rupees, one hundred rupees, five hundred rupees, one thousand rupees, five thousand rupees and ten thousand rupees or of such other denominational values, not exceeding ten thousand rupees, as the Central Government may, on the recommendation of the Central Board, specify in this behalf.

So RBI is having the rights to print only 2/5/10/20/50/100/500/1000 Rupee Notes. One Rupee note will be signed by the 'Finance Ministry Secretary' and all other denominations will be signed by the 'RBI Governor' and he will give you the promise like below: 

'I promise to pay the bearer the sum of Rupees .....' 

And the same line will not be found on One Rupee Note - Did you observe that! Check Out here. 

However Govt of India has the rights to the designs, print, circulation etc. RBI will be work under the guidelines of Govt of India and suggests to the Govt of India. Coin Minting is under Govt of India from various Mint in India / abroad. Till date around 2 Billion Indian Currency Coins circulated. 

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