Banking Awareness 2017 : Currency
Indian Rupee Sign (₹)
The Indian rupee sign is the currency sign for the Indian rupee, the official currency of India. Designed by D. Udaya Kumar, it was presented to Earth past times Government of Republic of Republic of India on 15 July 2010. Indian rupee symbol is combination of Devanagri ‘र’ in addition to latin ‘R’. Republic of Republic of India is fifth province to postulate maintain the currency sign. Design of Bank annotation is approved past times Central Govt. of India.
Types of Currency
- Hard Currency : [Safe sky currency]. This currency is whatever globally traded currency that serves equally a reliable in addition to stable shop of value [UK Pound, Sterling, Euro, U,S. dollar].
- Soft Currency : It indicates a currency which is expected to fluctuate or depreciate against other currencies such softness is typically the resultant of political or financial instability inside the associated country.
- Hot Money : In financial market, ‘hot money’ is the flow of funds from 1 province to about other inward lodge to earn a curt term turn a profit on involvement charge per unit of measurement differences and anticipated central charge per unit of measurement shifts. These speculative uppercase flows are called ‘hot money’ because they tin deed real speedily inward in addition to out of markets, potentially leading to marketplace instability.
- Cheap Money : A loan or credit amongst a depression involvement rate, or the setting of depression involvement rates past times a primal bank. It is proficient for borrower, but bad for investors, who volition come across the same depression involvement rates on investments similar saving a/c, Money Market Funds, CDs & Bonds.
- Dear Money : A province of affairs inward which money or loans are real hard to obtain inward a given country. If, you lot postulate maintain the chance to secure a loan, in addition to thus involvement rates are commonly extremely high equally good known equally “tight money“.
- Fiat Money : It has been defined variously equally :
- Any money declared past times a govt. to live legal tender.
- State-issued money which is neither convertible past times police line to whatever other-thing, nor fixed inward value inward price of whatever objective standard.
- Intrinsically valueless money used equally money because of regime decree.
- Token Money : It is the money whose confront value exceeds its toll of production. Most modem coins used inward circulation are token money, equally are newspaper notes.
- Bullion coins : It describes contemporary precious metallic coins minted past times official agencies for investment purposes. Historically, most currency were inward the shape of bullion coins, silvery in addition to aureate existence most mutual metals.
- High Powered Money : It refers to monetary base of operations which is controlled past times centre govt. or Central Bank of Country (RBI). It is kept past times world inward shape of cash in addition to commercial banks inward shape of cash or vault cash.
- Near Money : These are known equally Non-cash assets are highly liquid i.e., banking concern deposits, Treasury bills. It tin equally good live referred to assets that tin live speedily converted into cash.
- Note : It is equally good called Quasi-money.
- Commodity Money : This type is used inward barter system. In this type 2 parties central their commodity, in addition to thus commodity becomes equivalent to money. It is called commodity money eg: Gold coins, stones, silver, copper. • Representative Money : It is non physical shape of currency but represents the intent to pay directly eg: Bank cheques, Gold, Silver, Copper etc. It is called Commodity Backed Money.
- Fiduciary Money : When whatever banking concern assures the customers to pay inward dissimilar types of money in addition to when the client tin sell the hope or transfer it to someone else, it is called fiduciary money. Fiduciary money is to a greater extent than ofttimes than non paid inward gold, silvery & newspaper money. There are cheques in addition to banking concern notes, which are the examples of fiduciary money because both are same form of token which are used equally money & send the same value.
A Bank annotation (often known equally a bill, newspaper money or only a note) is a type of negotiable musical instrument known equally promissory note, made past times a bank, payable to bearer or demand.
- Soiled Note : It agency a annotation which has drib dead muddied due to usage in addition to equally good includes a 2 slice posted together wherein both the pieces presented belong to same annotation in addition to shape the entire note.
- Mutilated Note : It is banknote of which a part is missing or which is composed of to a greater extent than than 2 pieces.
- Imperfect Banknote : It is annotation which is wholly or partially obliterated, shrunk, washed, altered or indecipherable but does non include a mutilated banknote.
- According to RBI (Note Refund) rules, 2009 : Counterfeit money is limitation currency produced without the legal sanction of the province or regime producing or using counterfeit money is a shape of fraud or forgery.
Important Banking Awareness points most Indian Currency
Currency Note Presses :
- Currency Note Press (1928) — Nasik (Maharashtra) : Denomination of Rs. 1 to 100.
- Bank Note Press (1978) – Dewar (MP): Denomination of Rs. : 20, 50, 100, 500, 1000.
- Modernized Currency Notes Press (1995) : Mysore inward Karnataka, Salboni inward West Bengal.
- Indian Security Press (1922) : Nasik : Printing of cheques, bonds, Indira Vikas Patra, Postal stamp, Judicial & Non judicial stamps etc.
- Bhartiya Reserve Bank Note Mudran Private Ltd. (BRBNMPL) [H.Q Bengaluru] was established past times RBI equally its wholly owned subsidiary on three February 1995 to enable the RBI to pair the gap betwixt the provide in addition to need for banking concern notes inward the country.
- Security Printing Press (1982) —Hyderabad (Union excise duty stamps)
Minting of Coins
- Minting of Coins : Kolkata & Bombay (1829), Noida (1986), Hyderabad (1903)
- India Govt. Mints are :
- Mumbai Mint : Below appointment of money pocket-sized dot or diamond
- Kolkata Mint : Has no grade beneath date
- Hyderabad Mint : v pointed star
- Noida Mint : Small or thick dot on coin.
- NOIDA was the kickoff mint to mint coins of stainless steal.
- Coins below denomination of l paise ceased to live legal from xxx June 2011. Govt. issues a notification nether sub-section fifteen (A) of coinage Act 1906, announcing the appointment from which the money would ceased to live legal tender.
- 50 Paise coins are even thus inward circulation. They are called pocket-sized coins piece the other denominations are known equally rupee coins.
- Coins are minted nether department vi of the coinage Act-2011 equally per this deed GOI tin number coins upto Denomination of Rs. 1000.
- Govt. of Republic of Republic of India has been charged amongst responsibleness of production in addition to provide of coins to RBI.
- 1 Rs. annotation or money is issued past times GOI in addition to postulate maintain signature of the Finance Secretary piece other currency notes issued past times RBI in addition to postulate maintain signature of RBI Governor.
Important Details most Currency
- Security Paper Mill- Hoshangabad (M.P.) : Bank & currency annotation papers & watermark
- Banknote has 17 languages printed on it.
- RBI has planned to impress plastic annotation of Rs. 10.
- The 1 rupee note was the kickoff banknote printed past times independent India.
- 10,000 Rs. is the highest denomination RBI has printed inward its history (in 1938) in addition to subsequently RBI printed same notes inward 1954.
- They were demonetised inward 1946 in addition to 1978, respectively.
- In 1861 GOI introduced its kickoff newspaper money in addition to 10 Rs. annotation inward (1864), v Rs. (1872), l Rs. (1905), 100 Rs. (1900), 500 Rs. (1907), grand Rs. (1909).
- On 22nd Oct 2016, the Reserve Bank of Republic of Republic of India (RBI) has announced that it has completed preparations for introducing ₹2,000 currency. It volition live inward circulation soon.
- The notes postulate maintain already been printed, in addition to their despatch from the currency printing press inward Mysuru has commenced.
- Total notes (9) : 1, 5, 10, 20, 50, 100, 500, 1000, 2000
- The Rs. v note was the first newspaper currency issued past times RBI inward Jan 1938. Within the same yr notes of Rs 10, 100, 1000, 10,000 were issued.
- It costs a footling over ₹3 to create a ₹1,000 note, the lowest inward price printing costs equally a proportion of value.
- Printing notes of smaller denominations is relatively to a greater extent than costly.
- As of March 2016, the value of banknotes inward circulation was ₹16,41,500 lakh crore, an growth of 14.9 per cent over the previous year.
- In value terms, ₹500 in addition to ₹1,000 notes together accounted for 86.4 per cent of the full value of notes inward circulation.
- Oldest currency symbol is (£) (Pound Sterling) 8 th AD century
- Rupee/currency symbol nations : Euro (£) , the U.S. Dollar ($), Japanese Yen (¥), British Pound (£), Indian rupee (₹).
That’s all for at nowadays friends. In our side past times side Banking Awareness lesson, nosotros shall acquire most various Banking & Financial Institutes. Happy Reading 🙂
- Read Lesson 1 from Here
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- Read Lesson v from Here
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