Table of Contents
On what basis does RBI print notes?
Printing of currency notes in India is done on the basis of Minimum Reserve System (MRS). This system is applicable in India since 1956. According to this system, the Reserve Bank of India has to maintain assets of at least 200 crore rupees all the times.
Where is RBI printing press?
The government owned presses are at Nasik (Western India) and Dewas (Central India). The other two presses are at Mysore (Southern India) and Salboni (Eastern India).
Where does RBI print money?
The currency presses of SPMCIL are at Nasik (Western India) and Dewas (Central India). The two presses of BRBNMPL are at Mysuru (Southern India) and Salboni (Eastern India). Coins are minted in four mints owned by SPMCIL. The mints are located at Mumbai, Hyderabad, Kolkata and NOIDA.
What is the role of RBI in printing of bank notes?
Role of RBI and security printing presses in printing of bank notes It is the Reserve Bank of India that determines the quantity of notes to be printed and issued in various denominations based on the data from its eighteen regional offices spread across the country in various states and union territories.
How does the RBI decide on the amount of currency required?
After getting checked with Inflation, GDP, and clearance of old notes, The Issue department, and Management department of RBI will come with an estimate of the currency required and put the demand sheet in front of the central government for approval.
Why did the Reserve Bank of country XYZ print more currency notes?
Now, the country XYZ wants to increase its economy. So, they thought of printing more currency notes. Reserve Bank of country XYZ has printed more currency notes and so, the salary of 10 people in the country has increased by 10/-. So, now the annual income of each person in the country became 20/-.
How is the Reserve Bank of India’s reserve requirement of bank notes determined?
The reserve requirement of bank notes is also worked out by using statistical models. Taking all these factors into consideration, the Reserve Bank of India takes a final decision about the volume and value of the bank notes to be printed and put into circulation in the country.