Know how is currency made in India, how and where is it destroyed, and other details

Publish Date: 23 Nov, 2021 |
 

How is currency made in India?

The word Rupee was first used by Sher Shah Suri during his rule in India (1540-1545). The work of printing notes in India is done by the Reserve Bank of India and the Government of India does the work of minting coins. The first watermarked note in India was printed in 1861. At present, the currencies of 8 countries including India are called Rupee. Apart from Hindi and English, 15 languages are used in the Indian note. In this article further, we will know about the complete journey on the life of Indian Rupee.

Do you know that there are 4 firms in the world to produce a paper of Rupees, namely:

  1.  Arjo Vigis of France

  2. America's Portal

  3. Sweden's Gain and 

  4. Paper Fabrics Lucent.

Where are notes printed in India?

There are four banknote presses, four mints, and one paper mill in the country. The notes press are located in Dewas (Madhya Pradesh), Nashik (Maharashtra), Salboni (West Bengal), and Mysore (Karnataka).

Dewas note press prints around 265 crore notes in a year that include currency noted of Rs 20, 50, 100, and 500. Most importantly, the ink used in the notes is also produced in Dewas itself.

Currency Press Note Nashik: Since 1991, notes of 1, 2, 5, 10, 50 100 are printed here. Earlier, 50 and 100 rupee notes were not printed here. 

There is a security paper mill in Hoshangabad, Madhya Pradesh itself. Note printing papers come from Hoshangabad and abroad. 1000 notes are printed in Mysore.

Where are coins minted in India?

Coins are minted at four places in India, namely:

  1. Mumbai

  2. Kolkata

  3. Hyderabad

  4. Noida

What mark shows where the coin is minted?

Every coin has a mark printed on it, seeing which you will know which mint it belongs to. If a diamond is seen broken below the date printed on the coin, then this mark is the symbol of Hyderabad Mint. The coins of Noida Mint have a small and solid dot just below it where the year of printing is inscribed, it was first made on a 50 paise coin. In 1986, this mark started being inscribed on these coins. Apart from this, there is a Mint in Mumbai and Kolkata.

What are currency notes made of?

Paper made from cotton and a special type of ink is used by the Reserve Bank of India to make the currency notes. Of the paper used to make Indian currency notes, some are produced at the Currency Note Press (CNP) in Maharashtra and the majority at the Hoshangabad Paper Mill in Madhya Pradesh while some paper is also imported.

Offset ink for printing notes is manufactured at a banknote press located in Dewas, Madhya Pradesh. Whereas the embossed print that is seen on the note, its ink is made at SICPA (SICPA), a unit of the Swiss firm based in Sikkim.

How many notes are printed in India every year?

According to the Reserve Bank, India prints 2,000 crore currency notes every year and 40% of its cost goes to the import of paper and ink. This paper is imported from countries like Germany, Japan, and Britain.

Who decides how many notes and how many denominations are to be printed?

It is decided by the Reserve Bank of India and the number of notes to be printed is decided on the basis of the circulation of notes in the entire economy, soiled notes, and reserve requirements.

Who decides how many coins are to be minted?

Only the government has the right to decide this. However, one rupee note is also printed by the Ministry of Finance and it has the signature of the Finance Secretary.

How are notes printed?

Paper sheets that came from abroad or Hoshangabad are put in a special machine Simonton. Then coloring is done with another machine called Intabeau, that is, the notes are printed on the sheet. After this, there is a sorting of good and bad notes. There are about 32 to 48 notes on a sheet. Bad notes are removed during the sorting of notes.

The number of the banknote is printed in bright pink. Banknotes have shiny fibers and can be seen in ultraviolet light. The note is printed on watermarked paper mixed with cotton and cotton fibers. The first watermarked note in India was printed in 1861.

How is the serial number of notes given?

At the beginning of every financial year, it is estimated that how many notes of which class are to be printed, how many notes are to be supplied and how many are to be exchanged. The Reserve Bank of India has four printing presses, in which this work is divided. Notes of any class are printed in numbers up to one crore. After that, the letters of the English alphabet are added in front of that number. The letters of the alphabet are selected at random. This is usually repeated after many years.

Where are the obsolete notes deposited?

It is at the time of preparation of notes that their shelf life is decided. At the end of this period or if there is a defect in the notes due to continuous circulation, the Reserve Bank takes them back. The banknotes and coins after coming back from circulation are deposited in the issue offices.

What happens to mutilated notes?.

When a note becomes obsolete or is no longer eligible for circulation, it is deposited through commercial banks and is not sent to the market again. Till now it was a tradition that those old notes were burnt, but now RBI imported a machine worth Rs 9 crore instead of burning it to protect the environment. This machine cuts the old notes into small pieces, then these pieces are melted and made into the shape of bricks. These bricks are used for many purposes.

 

 

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