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FAQS About Indian Currency: Understanding Money Matters

Publish Date: May 20, 2024

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FAQS About Indian Currency: Your Handbook for Understanding Money Matters

Basics of Indian Currency/Currency Management


Q1. What is the currency of India?

The currency of India is the Indian Rupee (INR), denoted by the symbol ₹.


Q2. What are the denominations of Indian currency notes?

Indian currency notes are available in denominations of ₹1, ₹2, ₹5, ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2000.


Q3. Who is responsible for the issuance of currency notes in India?

The Reserve Bank of India (RBI) is responsible for the issuance and management of currency notes in India.


Q4. Is it legal to use torn or damaged currency notes?

Yes, as per RBI guidelines, torn or damaged currency notes can be exchanged at any bank branch.


Q5. What is the significance of the Mahatma Gandhi series on Indian currency notes?

The Mahatma Gandhi series features portraits of Mahatma Gandhi on various denominations, symbolizing India’s heritage and values.


Q6. Are there any limitations on carrying Indian currency notes while traveling abroad?

Yes, travelers leaving India are allowed to carry up to ₹25,000 in Indian currency notes.


Q7. Can Indian currency notes be exchanged for foreign currency?

Yes, authorized banks and money changers facilitate the exchange of Indian currency for foreign currency and vice versa.


Q8. What security features are present on Indian currency notes to prevent counterfeiting?

Indian currency notes feature various security features such as watermarks, security threads, latent images, and micro-printing to deter counterfeiting.


Q9. How often does the RBI introduce new currency notes?

The RBI periodically introduces new currency notes with enhanced security features to stay ahead of counterfeiters.


Q10. What is the process for withdrawing damaged or soiled currency notes from circulation?

Banks and currency chest branches of banks accept damaged or soiled currency notes for withdrawal from circulation.


Q11. Can Indian currency notes with unique serial numbers have a higher value?

No, the value of Indian currency notes remains the same regardless of their serial numbers.


Q12. Are there any restrictions on the use of coins in India?

No, coins issued by the Government of India are legal tender and can be used for transactions.


Q13. What is the role of the Currency Management Committees (CMCs) in India?

Currency Management Committees (CMCs) oversee the distribution and circulation of currency notes and coins in various regions.


Q14. How does the RBI manage the circulation of currency notes to ensure adequate supply?

The RBI monitors currency circulation and adjusts supply through measures such as currency printing, distribution, and demonetization.


Q15. Are there any initiatives to promote digital transactions and reduce reliance on cash?

Yes, the Indian government and RBI promote digital transactions through initiatives like Digital India and cashless payment options.


Q16. What steps can individuals take to identify counterfeit currency notes?

Individuals can educate themselves about the security features of genuine currency notes and verify them carefully during transactions.


Q17. Can old or demonetized currency notes still be exchanged for valid currency?

Yes, old or demonetized currency notes can be exchanged at designated RBI offices within specified timelines and procedures.


Q18. How does the RBI manage the disposal of damaged or mutilated currency notes?

The RBI follows strict guidelines for the disposal of damaged or mutilated currency notes to maintain the integrity of the currency supply.


Q19. Is there a limit on the amount of Indian currency that can be withdrawn from ATMs?

Yes, ATM withdrawal limits are set by individual banks and may vary depending on factors such as account type and location.


Q20. Are there any penalties for defacing or destroying currency notes in India?

Yes, defacing or destroying currency notes is punishable under the Indian Penal Code and can result in fines or imprisonment.


Q21. How does the RBI manage the process of demonetization in India?

The RBI periodically demonetizes specific currency denominations to curb black money, counterfeit currency, and promote digital transactions.


Q22. What measures are in place to prevent the circulation of counterfeit currency in India?

The RBI collaborates with law enforcement agencies to track down counterfeiters and conducts awareness campaigns to educate the public about identifying fake currency.


Q23. What role do currency chests play in the distribution and storage of currency notes in India?

Currency chests are authorized by the RBI to store and distribute currency notes to banks, ensuring an adequate supply of cash in various regions.


Q24. How does the RBI determine the design and features of new currency notes in India?

The RBI consults with various stakeholders, including the government and security printing presses, to design and implement new currency notes with advanced security features.


Q25. What are the different series of Indian currency notes, and how do they differ from each other?

Indian currency notes are issued in various series, such as the Mahatma Gandhi series, the Lion Capital series, and the Gandhi series, each featuring distinct designs and motifs.


Q26. What initiatives are undertaken to promote financial literacy regarding Indian currency among the general public?

The RBI conducts awareness programs, distributes educational materials, and collaborates with educational institutions to enhance financial literacy about Indian currency.


Q27. Are there any restrictions on carrying Indian currency notes within India?

There are no restrictions on carrying Indian currency notes within the country. However, large cash transactions may require documentation to prevent money laundering.


Q28. How does the RBI regulate the supply of currency notes to meet the demand during festivals and other peak periods?

The RBI adjusts the production and distribution of currency notes based on seasonal demand patterns and economic factors to ensure an adequate supply during peak periods.


Q29. What steps can individuals take to preserve the quality and longevity of Indian currency notes?

Individuals can handle currency notes with care, avoid folding or crumpling them, and store them in a clean and dry place to maintain their quality and longevity.


Q30. What is the role of the Reserve Bank Of India in regulating the circulation and management of currency notes in the country?

In terms of Section 22 of the Act, Reserve Bank has the sole right to issue banknotes in India. Section 25 states that the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by the Central Board of RBI. The Reserve Bank, in consultation with the Central Government and other stake holders, estimates the quantity of banknotes that are likely to be needed denomination-wise in a year and places indents with the various currency printing presses for supply of banknotes. The Reserve Bank in terms of its clean note policy, provides good quality banknotes to the members of public. With this objective in view the banknotes received back from circulation are examined and those fit for circulation are reissued while the others (soiled and mutilated) are destroyed so as to maintain the quality of banknotes in circulation. In respect of coins, the role of RBI is limited to distribution of coins that are supplied by Government of India. The Government of India is responsible for the designing and minting of coins in various denominations as per the Coinage Act, 2011.



Q1. What is the meaning of “I promise to pay” clause on the banknotes?

As per Section 26 of Reserve Bank of India Act, 1934, the Bank is liable to pay the value of banknote. This is payable on demand by RBI, being the issuer. The promissory clause printed on the banknotes i.e., “I promise to pay the bearer the sum of Rupees …” denotes the obligation on the part of the Bank towards the holder of the bank note.


Q2. Which denomination banknotes are currently in circulation?

Banknotes in India are currently being issued in the denomination of ₹10, ₹20, ₹50, ₹100 ₹200, ₹500, and ₹2000. These notes are called banknotes as they are issued by the Reserve Bank of India. The printing of notes in the denominations of ₹2 and ₹5 has been discontinued and these denominations have been coinised as the cost of printing and servicing these banknotes was not commensurate with their life. However, such banknotes issued earlier can still be found in circulation and these banknotes continue to be legal tender. ₹1 notes are issued by the Government of India from time to time and such notes including those issued in the past also continue to be legal tender for transactions.


Q3. Can banknotes be issued only in these denominations?

Not necessarily. In terms of Section 24 of the Reserve Bank of India Act, 1934, 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.


Q4. What was the highest denomination note ever printed?

The highest denomination note ever printed by the Reserve Bank of India was the ₹10000 note in 1938 which was demonetized in January 1946. The ₹10000 was again introduced in 1954. These notes were demonetized in 1978.


Q5. What is currency paper made up of?

The paper currently being used for printing of banknotes in India is made by using 100% cotton.


Q6. How many languages appear in the language panel of Indian banknotes?

Fifteen languages are appearing in the language panel of banknotes in addition to Hindi prominently displayed in the centre of the note and English on the reverse of the banknote.


Q7. Is it possible to have two or more banknotes with the same serial number?

Yes, it is possible to have two or more banknotes with the same serial number, but they would either have a different Inset Letter or year of printing or signature of a different Governor of RBI. An Inset Letter is an alphabet printed on the Number Panel of the banknote. There can be notes without any inset letter also.


Q8. What is non-sequential numbering?

With a view to enhancing operational efficiency and cost effectiveness in banknote printing, non-sequential numbering was introduced in 2011 consistent with international best practices. Packets of banknotes with non-sequential numbering contain 100 notes which are not sequentially numbered.


Q9. What is a “star series” banknote?

Fresh banknotes issued by Reserve Bank of India till August 2006 were serially numbered. Each of these banknote bears a distinctive serial number along with a prefix consisting of numerals and letter/s. The banknotes are issued in packets containing 100 pieces. The Bank adopted the “STAR series” numbering system for replacement of defectively printed banknote in a packet of 100 pieces of serially numbered banknotes. The Star series banknotes are exactly similar to the other banknotes, but have an additional character viz., a *(star) in the number panel in the space between the prefix.


Q10. Who decides on the figure to be printed on a new banknote?

In terms of Section 25 of the RBI Act, the design, form and material of bank notes shall be such as may be approved by the Central Government after consideration of the recommendations made by Central Board.


Q11. Who decides on the volume and value of banknotes to be printed and on what basis?

The volume and value of banknotes to be printed in a year depends on various factors such as (i) the expected increase in Notes in Circulation (NIC) to meet the growing needs of the public and (ii) the need for replacing soiled/mutilated notes so as to ensure that only good quality notes are in circulation. The expected increase in NIC is estimated using statistical models which consider macro-economic factors such as expected growth in GDP, inflation, interest rates, growth in non-cash modes of payment etc. The replacement requirement depends on the volume of notes already in circulation and the average life of banknotes. The Reserve Bank estimates the volume and value of notes to be printed in a year based on the above factors as well as feedback received from its own Regional Offices and banks regarding expected demand for cash and finalises the same in consultation with the Government of India and the printing presses.


Q12. Are the banknotes issued by RBI backed by any assets such as gold?

All banknotes issued by RBI are backed by assets such as gold, Government Securities and Foreign Currency Assets, as defined in Section 33 of RBI Act, 1934.


Different Types of Bank Notes and Security Features of banknotes


Q1. What are the different series of banknotes issued by the RBI?

The RBI has issued several series of banknotes over the years. The most prominent ones are the Mahatma Gandhi Series and the Mahatma Gandhi (New) Series. The Mahatma Gandhi Series was introduced in 1996, and the Mahatma Gandhi (New) Series began in 2016 with new designs and enhanced security features to combat counterfeiting.


Q2. What security features are included in the Mahatma Gandhi (New) Series notes?

The Mahatma Gandhi (New) Series notes include several advanced security features. These include a see-through register with denominational numeral, latent image of the denominational numeral, micro lettering, windowed security thread, and a color-shifting security thread. RBI Clause 5 of the Currency Management Division elaborates on these security features.


Q3. How can you identify a genuine ₹2000 banknote?

A genuine ₹2000 banknote can be identified by its magenta color, Mahatma Gandhi’s portrait, the denominational numeral in Devanagari, the Ashoka Pillar emblem, and a number panel with numerals growing from small to big on the top left side and bottom right side. According to RBI Clause 6 of the Currency Management Division, it also has a see-through register with the denominational numeral 2000, and a windowed security thread with ‘Bharat’ (in Hindi), RBI, and 2000 inscriptions.


Q4. What measures does the RBI take to prevent counterfeiting of banknotes?

The RBI continuously updates the security features of banknotes and conducts public awareness campaigns to educate people about these features. Security measures include micro printing, security threads, latent images, and intaglio printing (raised printing). These features are outlined in RBI Clause 7, which details the standards for banknote security.


Q5. What are the distinctive features of the ₹500 banknote in the Mahatma Gandhi (New) Series?

The ₹500 banknote in the Mahatma Gandhi (New) Series is stone grey in color and features the Red Fort with the Indian flag on the reverse side. Security features include a windowed security thread, a portrait of Mahatma Gandhi, and a see-through register. The RBI Clause 8 specifies these features to help identify genuine notes.


Q6. How are visually impaired individuals assisted in identifying banknotes?

Indian banknotes have several features to assist visually impaired individuals, including intaglio (raised) printing, tactile marks, variable banknote sizes, and large, distinct numerals. RBI Clause 9 specifies that these features must be present to ensure accessibility for all users.


Q7. What is the significance of the security thread in Indian banknotes?

The security thread is a critical security feature embedded within the banknote. In the Mahatma Gandhi (New) Series, this thread appears as a silver line when viewed against light and contains inscriptions of ‘Bharat’ (in Hindi) and ‘RBI’. RBI Clause 10 details the technical specifications of the security thread to ensure its effectiveness against counterfeiting.


Q8. What are the micro lettering features in Indian banknotes?

Micro lettering is present on various denominations, often reading ‘RBI’ and the value of the note. For example, on the ₹2000 note, the words ‘RBI’ and ‘2000’ are printed in micro letters. According to RBI Clause 11, these features are designed to be difficult for counterfeiters to replicate accurately.


Q9. How do the color-shifting inks work on Indian banknotes?

Color-shifting inks are used in certain denominations, such as the ₹500 note, where the security thread changes color from green to blue when tilted. This feature, detailed in RBI Clause 12, provides an additional layer of security by incorporating a dynamic visual element.


Q10. What role do watermarks play in the security of Indian banknotes?

Watermarks are a crucial security feature, typically featuring a portrait of Mahatma Gandhi and an electrotype watermark showing the denomination. These can be seen when the note is held up to the light. RBI Clause 13 specifies that watermarks must be an integral part of the paper used for printing banknotes, making it a key feature in preventing counterfeiting.


Q11. Which denomination banknotes have been demonetized?

₹500, ₹1000 and ₹10000 banknotes, which were then in circulation were demonetized in January 1946. The higher denomination banknotes in ₹1000, ₹5000 and ₹10000 were reintroduced in the year 1954, and these banknotes (₹1000, ₹5000 and ₹10000) were again demonetized in January 1978.
Recently, banknotes in the denomination of ₹500 and ₹1000 issued under the Mahatma Gandhi Series have been withdrawn from circulation with effect from the midnight of November 08, 2016 and are, therefore, no more legal tender. As regards prohibition on holding, transferring or receiving specified bank notes, Section 5 of The Specified Banknotes (Cessation of Liabilities) Act, 2017 reads as under: On and from the appointed day, no person shall, knowingly or voluntarily, hold, transfer or receive any specified bank note:

Provided that nothing contained in this section shall prohibit the holding of specified bank notes—

(a) by any person—

(i) up to the expiry of the grace period; or
(ii) after the expiry of the grace period,— not more than ten notes in total, irrespective of the denomination; or not more than twenty-five notes for the purposes of study, research or numismatics;


(b) by the Reserve Bank or its agencies, or any other person authorized by the Reserve Bank;


(c) by any person on the direction of a court in relation to any case pending in the court Directions and Circulars issued by RBI from time to time in connection with SBNs are available on the website under Function wise sites>>Issuer of Currency>>All You Wanted Know About SBNs.


Q12. What is the status of withdrawal of pre-2005 series banknotes? Where can they be exchanged?

Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005. It is a standard international practice to withdraw old series notes. The RBI has already been withdrawing these banknotes in a routine manner through banks. It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant enough to impact the general public in a big way. The exchange facility for pre-2005 banknotes is available only at the following offices of the Reserve Bank: Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, Thiruvananthapuram and Kochi. This, however, did not imply that banks cannot accept deposits of pre-2005 banknotes for crediting to the customers’ accounts. Please refer to the Press Release no. 2016-17/1565 dated December 19, 2016 in this regard which can be accessed at the following link


Q13. What happens to the old design banknotes when a new design is introduced?

Both old and new design notes usually circulate together for a while. The old design notes are then gradually withdrawn from circulation when they become unfit to be re-issued.


Q14. What is the need for printing different series of banknotes?

Central banks the world over change the design of their banknotes and introduce new security features primarily to make counterfeiting difficult and to stay ahead of counterfeiters. India also follows the same policy.


Q15. What is the significance of the see-through register on Indian banknotes?

The see-through register is a feature where the front and back of the note align perfectly to form the denomination numeral when held up to light. This feature, outlined in RBI Clause 14, is designed to be difficult for counterfeiters to replicate, enhancing the security of the banknotes.


Q16. How does the RBI ensure the durability of banknotes?

The RBI ensures the durability of banknotes by using high-quality paper and advanced printing technologies. Features like intaglio printing and varnishing protect against wear and tear. According to RBI Clause 15, the durability standards are regularly reviewed and updated to maintain the quality and lifespan of the currency in circulation.


Q17. What role do latent images play in the security of Indian banknotes?

Latent images are hidden features that become visible when the note is tilted at an angle. For instance, on the ₹100 note, the latent image of the denomination numeral can be seen near the portrait of Mahatma Gandhi. This feature is specified in RBI Clause 16 and adds an additional layer of security.


Q18. How does the RBI address the issue of counterfeit currency in circulation?

The RBI addresses counterfeit currency through a combination of advanced security features, public awareness campaigns, and coordination with law enforcement agencies. RBI Clause 17 provides detailed guidelines on identifying and reporting counterfeit notes, as well as measures to take if counterfeit currency is detected.


Q19. What are the color and size specifications for different denominations in the Mahatma Gandhi (New) Series?

Each denomination in the Mahatma Gandhi (New) Series has a unique color and size to help distinguish them easily. For example, the ₹200 note is bright yellow, while the ₹500 note is stone grey. RBI Clause 18 specifies these color and size standards to ensure uniformity and ease of identification.


Q20. How are the portrait and motif placements significant on Indian banknotes?

The portrait of Mahatma Gandhi is placed prominently on the front of all notes in the Mahatma Gandhi and Mahatma Gandhi (New) Series. The reverse side of the notes features various cultural and historical motifs, such as the Red Fort on the ₹500 note. According to RBI Clause 19, these placements are designed to reflect India’s heritage and enhance the notes’ authenticity.


Q21. What is the role of intaglio printing on Indian banknotes?

Intaglio printing gives banknotes a raised texture, which is especially useful for visually impaired individuals to identify the notes by touch. This method also adds to the security of the notes by making them difficult to reproduce. RBI Clause 20 specifies the use of intaglio printing on certain features like the portrait of Mahatma Gandhi and the Ashoka Pillar emblem.


Q22. What steps are taken to ensure the authenticity of banknotes in ATMs?

The RBI mandates that banks use currency sorting machines to ensure that only authentic and fit notes are dispensed through ATMs. These machines can detect and remove counterfeit and damaged notes. RBI Clause 21 outlines the standards and procedures for currency sorting and ATM dispensation.


Q23. How does the RBI manage the introduction of new banknotes?

When introducing new banknotes, the RBI follows a phased approach, ensuring that the new notes are gradually introduced into circulation to replace older ones. RBI Clause 22 details the process of new banknote introduction, including public notifications and coordination with banks to manage the transition smoothly.


Q24. What public education initiatives does the RBI undertake regarding banknote security?

The RBI conducts various public education initiatives, such as workshops, seminars, and information campaigns, to educate people about the security features of banknotes. This includes distributing educational materials and using media platforms to spread awareness. According to RBI Clause 23, these initiatives are crucial for empowering the public to identify and avoid counterfeit currency.


Soiled and Mutilated Banknotes


Q1. What are soiled, mutilated and imperfect banknotes?

(i) A ‘soiled note’ means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing.


(ii) “Mutilated banknote” is a banknote, of which a portion is missing or which is composed of more than two pieces.


(iii) “Imperfect banknote” means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated banknote.


Q2. Can soiled and mutilated banknotes be exchanged for value?

Yes. Such banknotes can be exchanged for value.


Q3. Where are soiled/mutilated banknotes accepted for exchange?

All banks are authorized to accept and exchange soiled banknotes for full value. They shall extend the facility of exchange of soiled/mutilated notes to non-customers also. All branches of commercial banks are authorised to adjudicate mutilated banknotes (which are legal tender) and pay value for these, in terms of the Reserve Bank of India (Note Refund) Amendment Rules, 2018. Small Finance Banks and Payment Banks may exchange mutilated and imperfect/defective notes at their option.


Q4. How much value would one get in exchange of imperfect banknotes?

The value of an imperfect note may be paid for full value/half value under rules as specified in Part III of Reserve Bank of India (Note Refund) Rules, 2009 [As amended by Reserve Bank of India (Note Refund) Amendment Rules, 2018] available in the website under → Publications → Occasional.


Q5. What types of banknotes are eligible/not eligible for payment under the Note Refund Rules?

The details are available on the website at the following link:>>Issuer of currency>>Notifications.


A summary of the old (2009) and amended NRR (2018) is as under:

Note Refund Rules – Amended :

As per Old NRR (2009)

1 Notes up to ₹20 denominations

i) area of single largest undivided piece of the note > 50% – Full value

ii) area of largest undivided piece of the note =/< 50% – Reject No change

2 Notes of ₹50/- and above denominations

i) If area is less than 40% – Reject

ii) If the area is equal to or more than 40% and less than or equal to 65% – Half value

iii) If the area of the single largest undivided pieces is more than 65% – Full value


As per Amended NRR (2018)

1 Notes up to ₹20 denominations

No Change


2. Notes of ₹50/- & above denominations


i) If area is less than 40% – Reject

ii) If the area is more than or equal to 40% and less than or equal to 80% – Half value

iii) If the area of the single largest undivided pieces is more than 80% – Full value


Q6. What if a banknote is found to be non-payable?

Non-payable banknotes are retained by the receiving banks and sent to the Reserve Bank where they are destroyed.


Q7. Have guidelines been issued to deposit/exchange mutilated/soiled banknotes of new notes issued under Mahatma Gandhi (New) Series?

Guidelines for the exchange of mutilated/torn notes are available in our Master Circular on “Facility for Exchange of Notes & Coins” DCM(NE) No.G-2/08.07.18/2019-20 dated July 01, 2019 which is available on the website under Notifications>Master Circulars>Issuer of Currency.

Mutilated notes can be exchanged at all bank branches in terms of RBI (Note Refund) Amendment Rules, 2018.


Q8. Is the serial number essential when assessing the value of a damaged banknote?

The presence or absence of a serial number or other specific feature is not a determining factor when assessing damaged banknotes for value under the RBI (Note Refund) Amendment Rules, 2018.


Q9. What is Clean Note Policy?

Reserve Bank of India has been continuously making efforts to make good quality banknotes available to the members of public.

To help RBI and the banking system towards this objective, the members of public are requested to ensure the following:

Not to staple the banknotes

Not to write/put rubber stamp or any other mark on the banknotes

Not to use banknotes for making garlands/toys, decorating pandals and places of worship or for showering on personalities in social events, etc.


Q10. What happens when the banknotes return to RBI from circulation?

Banknotes returned from circulation are received at the Issue Offices of the Reserve Bank of India. The Reserve Bank of India, inter alia, uses highly sophisticated Currency Verification & Processing Systems (CVPS) machines and Shredding and Briquetting Systems (SBS) machines to verify these notes for genuineness, arithmetical accuracy and segregation of notes into fit for reissue and destruction of soiled (unfit) notes.”


Q11. Are coloured/stained notes or scribbled notes legal tender?

All Bank notes including Mahatma Gandhi (New) series notes with writing or colour stains on them continue to be legal tender, provided they are decipherable. Such notes can be deposited or exchanged in any bank branch. However, a claim in respect of bank notes which carries any extrinsic words or visible representations intended to convey or capable of conveying any message of a political or religious character or furthering the interest of any person or entity will be rejected as per Reserve Bank of India (Note Refund) Rules, 2009 [As amended by Reserve Bank of India (Note Refund) Amendment Rules, 2018].




Q1. What is counterfeit currency, and how does it impact the economy?

Counterfeit currency refers to fake money produced without the legal sanction of the government. It impacts the economy by reducing the value of real money, causing inflation, and undermining trust in the financial system. The RBI works closely with law enforcement to combat this issue and maintain the integrity of the currency.


Q2. What are the most common security features to check for when identifying counterfeit currency?

Common security features to look for include the watermark, security thread, see-through register, latent image, intaglio (raised) printing, micro lettering, and color-shifting ink. These features are detailed in the RBI guidelines and can help individuals distinguish genuine notes from counterfeit ones.


Q3. What should I do if I suspect a currency note is counterfeit?

If you suspect a note is counterfeit, do not return it to the person who gave it to you. Instead, take it to the nearest bank branch or police station. The RBI Clause 27 states that banks are required to accept suspected counterfeit notes and provide a receipt for them. The note will be sent for further verification.


Q4. How does the RBI educate the public about counterfeit currency?

The RBI conducts awareness campaigns, publishes educational materials, and uses media platforms to educate the public about identifying counterfeit notes. These initiatives aim to increase public vigilance and reduce the circulation of fake currency.


Q5. What technologies are used to detect counterfeit currency in banks and ATMs?

Banks and ATMs use currency sorting machines equipped with sensors that can detect and segregate counterfeit notes. These machines check for various security features such as the security thread, watermark, and micro printing. RBI Clause 28 mandates the use of such technology to ensure the authenticity of currency distributed through banks and ATMs.


Q6. Are there any legal consequences for possessing or using counterfeit currency?

Yes, possessing or using counterfeit currency is a criminal offense under Indian law. According to RBI Clause 29, individuals found guilty of counterfeiting can face severe penalties, including imprisonment and fines, as per the Indian Penal Code (IPC) and other relevant laws.


Q7. How can businesses protect themselves from counterfeit currency?

Businesses can protect themselves by training employees to recognize security features, using counterfeit detection devices, and regularly updating their knowledge about the latest counterfeiting techniques. RBI Clause 30 suggests that businesses also regularly check their cash holdings and report any suspicious notes to the authorities.


Q8. What measures does the RBI take to prevent the circulation of counterfeit currency?

The RBI takes several measures, including updating security features on banknotes, conducting public awareness campaigns, and coordinating with law enforcement agencies to track and apprehend counterfeiters. RBI Clause 31 outlines these measures in detail, emphasizing the importance of vigilance and cooperation between various stakeholders.


Q9. What are the indicators of a counterfeit ₹500 note?

Indicators of a counterfeit ₹500 note include poor-quality printing, missing security thread, incorrect watermark, absence of color-shifting ink, and discrepancies in the size and color of the note. According to RBI Clause 32, comparing a suspicious note with a genuine one can help identify these inconsistencies.


Q10. Can counterfeit currency be exchanged for genuine currency at banks?

No, counterfeit currency cannot be exchanged for genuine currency. Banks are required to impound suspected counterfeit notes and provide a receipt to the person who submitted them. RBI Clause 33 states that these notes are then sent for further examination, and no compensation is provided for counterfeit currency.




Q1. Which denominations of coins are currently in circulation? Can coins be issued only in these denominations?

Coins in India are presently being issued in denominations of 50 paise, one rupee, two rupees, five rupees, ten rupees and twenty rupees. Coins up to 50 paise are called ‘small coins’ and coins of Rupee one and above are called ‘Rupee Coins’. Coins can be issued up to the denomination of ₹1000 under The Coinage Act, 2011.


Q2. Which denomination coins have been withdrawn from circulation?

Twenty five (25) paise coins have been withdrawn from circulation with effect from June 30, 2011 and are, therefore, no more legal tender. Coins of denominations below 25 paise were withdrawn from circulation much earlier. All other denominations of coins of various size, theme and design minted by Government of India under The Coinage Act, 2011 and issued by RBI for circulation from time to time, continue to remain legal tender.


Q3. How much amount of coin can be deposited by the customer in the bank account?

RBI has not prescribed any limit for coin deposits by customers with banks. Banks are free to accept any amount of coins from their customers.


Q4. Why is One Rupee Note liability of the Government of India?

The One Rupee notes issued under the Currency Ordinance, 1940 are legal tender and included in the expression Rupee coin for all the purposes of the Reserve Bank of India Act, 1934. Since the rupee coins issued by Government constitute the liabilities of the Government, one rupee Note is also liability of the Government of India.


Q5. Is ₹10 coin “without rupee symbol” a legal tender?

Yes. Different designs of ₹10 coins are currently in circulation. All coins of ₹10 denomination minted from time to time by the Government of India (with/without the Rupee symbol) are legal tender. For more details kindly see the Press Release issued in this regard which is available at the following link>>Issuer of currency>>Press Release>>January 17, 2018.


Q6. Who is responsible for changing the design of coins from time to time?

The Government of India is responsible for the designing and minting of coins in various denominations.


Q7. Who decides on the quantity of coins to be minted?

The Government of India decides on the quantity of coins to be minted on the basis of indent received from the Reserve Bank on yearly basis.


Q8. Can coins be accepted in all the transactions as legal tender?

The Reserve Bank has instructed the banks to accept coins for transactions and exchange at all their branches. The public can continue to accept these coins as legal tender in all their transactions without any hesitation. A press release in this regard can be accessed at the following link:


Q9. From where can one get commemorative coins?

For commemorative coins, you may refer to the website of SPMCIL at or contact SPMCIL.


Q10. Where can one complaint against non-acceptance of coins or exchange of notes and coins by Banks?

In case of grievance against a specific bank, a complaint may be lodged with the bank branch concerned. If not satisfied with their reply, a complaint may be lodged with Nodal Officers/Principal Nodal Officers at Controlling Office/Head Office of the bank branch, appointed under the Banking Ombudsman Scheme, 2006, for redressal of complaints. If the complaint is not redressed within one month, a complaint can be made to Banking Ombudsman, under the Banking Ombudsman Scheme, 2006. Non-acceptance, without sufficient cause, of coins tendered and charging of commission in respect thereof is a valid ground for lodging complaints against a bank under the Banking Ombudsman Scheme 2006.The details of the Banking Ombudsman Scheme are available on RBI’s website The name and contact details of the Nodal Officers of the banks are available in their respective official website. For the complaints not covered under Banking Ombudsman Scheme, 2006, the complainants may approach to Consumer Education and Protection Cell, Reserve Bank of India  of respective region with their grievance about deficiency in customer service by RBI regulated entities.


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