Issuance of Currency

Currency plays the most crucial role in managing huge tasks such as the GDP as well as minor jobs such as the purchase of everyday goods. Without the existence and issuance of currency, we cannot imagine the completion of daily tasks. In India, the issuance of currency is done by the RBI, the Reserve Bank of India. Currency is the money present in circulation in the form of notes or coins. However, currency does not depict the entire economy of a country, and it only showcases a part of the economic earnings of a nation. Most money present in a country these days can be found existing in the form of credit or as an electronic record. 

Indian currency

The Indian rupee is the currency of our country. One rupee is constituted of 100 paise. And a 1₹ coin is the smallest denomination currently used in India. The Reserve Bank of India manages the issuance of currency. The Indian government is also responsible for issuing coins. So, in India, the issuance of currency is done by the RBI. It also plays a vital role in addressing this currency on the basics of the RBI act of 1934. 

The issuance of currency coins with this sign started on July 8, 2011. Another essential incident for the Indian currency that took place on 8 November 2016 was when the government of India announced demonetisation. All the existing 500 and 1000 rupee notes were declared invalid. A new currency of ₹500 and ₹2000 notes was issued in circulation with effect on 10 November 2016. 

Issuance of currency

Money issuance is the way in which the currency supply of a country is increased. By engaging in open market organisations, countries can increase their currency flow. The monitoring of the amount of money invested in a country’s economy is done by measuring the economic aggregates. 

The monetary authority or the central bank of a country monitors the issuance of currency. In most Western countries, the monetary authority is independent of the government and is hence not answerable to them in any manner. While in some other countries, the governor of these banks is appointed by the government. 

The issuance of currency in India is under the management of the RBI. RBI assures the issuance of different denominations of currency. This way, it facilitates the transfer of funds between the state and the Central government. The RBI caters to the money needs of the public. Fourteen departments have been set up in different parts of the country to ease the issuance of currency. Apart from these 14 places, currency requirements at other locations are fulfilled with the help of currency chests. 

History of issuance of currency

Notes and coins have a long history of usage as currency. Earlier, the value of a particular currency was determined by the material used to produce it; silver, gold and copper coins were famous during earlier times. People used silver bars as a method of payment. A fixed weight of the bar was paid in exchange for a particular commodity. Carrying bulk loads of gold and silver around was a risky task, and hence the first coins were introduced out of precious metal. Some items required bulk payments, and it became difficult to make payments through 100s and 1000s of copper coins. That’s when the need for a more accessible mode of currency was felt. 

Later, Italians started producing round metal disks on which their value was impressioned. 

In recent times, coins have been produced in mints. Mints play an essential role in the circulation of currency in any country. 

Therefore, the issuance of currency in India can be done by understanding the fact that people started switching to more accessible payment methods, and that’s how a particular currency for the country was developed. Switching from heavy metal and gold coins to the currency notes that we now use, we Indians have come a long way. 

Conclusion

To state what was the conclusion of issuance of currency in India, then a person can say that conclusion of issuance of currency in India is that the RBI issues our country’s currency. The first currency was published around 5000 years back by the Mesopotamian people. India has four printing areas for printing currencies. These are located in Mysore, Salboni, Dewas and Nasik. The issuance of currency and its management is in the hands of the government and the people living in that country.