ISSUER OF CURRENCY

The Reserve Bank is the nation's sole note issuing authority. Along with the Government of India, we are responsible for the design, production and overall management of the nation's currency, with the goal of ensuring an adequate supply of clean and genuine notes.

Information pertaining to Department of Currency Management


RIA No Information Sought Reply given / Information provided Date of Reply
3297/11-
12 DCM
Arrangements for
minting of coins
and printing of
notes and names and
addresses of
agencies [Mints / Note Presses]
in India
(i) Arrangements for minting of coins is done through the following Mints of Government of India:
  • (a) India Government Mint Shahid Bhagat Singh Marg Fort, Mumbai 400023
  • (b) India Government Mint Alipore, Kolkata 600053
  • (c) India Government Mint D-2, Sector -1, P.O.Box No.78
    Noida 201301
  • (d) India Government Mint IDA Phase, Cherapally (R.R.District) Hyderabad 500051
February 7,
2012
2886/11-12
DCM
Procedure & Terms
of supply of new
currency in various
chests of banks
(i) As regards the procedure, allocation of notes and coins to Reserve Bank of India offices is
made on the basis of indent placed to presses and mints. Offices of Reserve Bank of India
arrange remittances to currency chests under their jurisdiction as per the periodical indents
placed by the currency chests and stocks available with them as well as with the currency
chest. Currency chest branches in turn supply notes and coins received from Reserve Bank of
India offices to other branches linked to them. There are no terms and conditions.
January 13,
2012
RIA
2439/2007
-08
What are the
different forms and
value of Rupee
accepted as per
Indian law?

When does an in-use
rupee form become
invalid or not
acceptable? is there
any Govt order that
describes an invalid
form of rupee?

Is a torn/damaged rupee note valid?

What damage will
make rupee note
invalid (eg complete
torn apart note ,half
torn note etc. ?

What are various
options available for
one to follow to make
an invalid rupee note
valid.
Bank note/ coins are legal tender in payment or on account as indicated below:

(i) Banknote of any denomination and coin of any denomination not lower than a rupee for any sum.

(ii) In case of a half rupee coin for any sum not exceeding 10 rupees.

(iii) In the case of any other coin for any sum not exceeding one rupee.

The Central Government may, by notification in the gazette, declare that with effect from such date as may be specified, any series of bank notes of any denomination shall cease to be legal tender. Further, no person shall of right be entitled to recover from the Government or the Reserve Bank of India, the value of any lost, stolen, mutilated or imperfect currency note of Government of India or banknote. The value of imperfect / mutilated note may be refunded as a matter of grace subject to conditions and limitations.

Soiled bank notes (i.e. notes which have become dirty and due to excessive use or double numbered banknote cut into two pieces but on which both the numbers are intact) can be exchanged for full value at Reserve Bank of India or any commercial bank branch.

The public can get value of mutilated notes (i.e. notes which are torn,disfigured, burnt, washed, eaten by white ants etc.) as a matter of grace, as laid down in the RBI Note Refund Rules 1975 (as amended up to 1980) after adjudication. Currently, provisions exist for payment of full, half or no value as far as bank notes of Rs.10 and above are concerned. As regards Re.1/-, Rs.2/-, and Rs.5/- notes, the tenderer can get either full or no value depending upon the condition of the note. Mutilated notes can be tendered at Reserve Bank of India Offices/designated bank branches.

The following types of banknotes are not eligible for payment under RBI Note Refund Rules, 1975 (as amended up to 1980)

A banknote which is

  • less than half the area of the full note.
  • devoid of the major portion of the number on an undivided area i.e. the prefix and three digits or four digits of the number in banknotes up to and inclusive of Rs.5/- in respect of banknotes of Rs.10/- and above where this inadequacy is present at both the numbering panels.
  • Cancelled by any office of Reserve Bank of India or against which the value has already been paid.
  • found to be forged / counterfeit.
  • Deliberately cut or tampered, carrying extrinsic words or visible representation intended to convey or capable of conveying any message of a political character


Notes can be exchanged / tendered for adjudication over the counters of Reserve Bank of India Offices/designated bank branches. Mutilated notes can be sent by post for adjudication to the nearest Issue Office of Reserve Bank of India.
July 25,
2008
2
RIA 135/
2007-08
DCM
Instructions given by
RBI to banks
regarding exchange
of mutilated notes.
Information on instructions given to banks on exchange of mutilated notes is in our Master
Circular- "Facility for exchange of Notes and Coins" available at
http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=3671&Mode=0 on our website.
Aug 27,
2007
1
RIA 133/
2007-08
DCM
Are 25 paise and
50 paise coins
withdrawn from
circulation?
The 25 paise and 50 paise coins are legal tender and are not withdrawn from circulation. They may be validly used/ accepted for all transactions. RBI has issued press release to that effect and has also issued instructions to banks to display at all branches, boards/notices for information of customers/ general public to the effect that all 25 and 50 paise coins continue to be valid/legal tender and may be used for transactions in the normal course. Aug 22,
2007
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