In News:

• Recently, a political party urged the central government to put pictures of Goddess Lakshmi and Lord Ganesha on currency notes to bring 'prosperity' to the country.

What’s in today’s article:

• Design and form of bank notes

Design and form of bank notes

Who decides what Indian bank notes and coins are supposed to look like?

• Any currency design change must be approved by the Reserve Bank of India's (RBI) central board and the central government.
• Changes in the design of coins are the prerogative of the central government.
  • In the case of coins, RBI's role is restricted only to the distribution of the coins.

Role of the RBI in issuing notes

• The RBI internally works out a design, which is then put forth by the RBI's central board.
  • According to Section 22 of The Reserve Bank of India Act, 1934, RBI has the "sole right" to issue banknotes in India.
  • Section 25 of the act 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 [RBI's] Central Board.
• Department of Currency Management is responsible for administering the core function of currency management.
  • It addresses policy and operational issues relating to the designing of notes, forecasting the demand for notes and coins, and ensuring the smooth distribution of banknotes and coins across the country.
• Any changes in the design of the notes are worked out by the Department of Currency Management, which then submits the design to RBI and recommends it to the government.
• It is only after the government's nod that a particular design change comes into effect.

Minting of coins

• The government has the power to design and mint coins in various denominations. It has been given this right under the Coinage Act, 2011.
• The government decides on the quantity of coins to be minted on the basis of indents received from the RBI on a yearly basis.
• Coins are minted in four mints owned by the Government of India in Mumbai, Hyderabad, Kolkata and Noida.

Printing of currency

• Two of India’s currency note printing presses are in Nasik and Dewas. These are owned by the Government of India,
• Two other printing presses are in Mysore and Salboni. These are owned by the RBI through its wholly owned subsidiary, Bharatiya Reserve Bank Note Mudran Ltd (BRBNML).

Different types of banknotes issued so far

• Ashoka Pillar notes
  • Post-Independence, the first notes issued were Re one banknotes.
  • The design was kept intact, except that the symbol of the Ashoka Pillar replaced the image of King George VI's portrait.
  • In 1987, the Rs 500 note was introduced with the portrait of Mahatma Gandhi. The watermark continued to be the Lion Capital, Ashoka Pillar.
• Mahatma Gandhi 1996 series
  • From 1996 onwards, all the banknotes bore the portrait of Mahatma Gandhi on the front, in place of the Lion Capital of Ashoka Pillar.
  • The pillar image was moved to the left, next to the watermark window.
• Mahatma Gandhi 2005 series
  • In the Mahatma Gandhi 2005 series, notes were issued in denominations of Rs 10, Rs 20, Rs 50, Rs 100, Rs 500, and Rs 1,000.
  • They contain some additional features to the 1996 series notes.
• Mahatma Gandhi 2016 series notes
  • According to RBI, these new notes highlight India's cultural heritage and scientific achievements.
  • Distinct colours were used for the different denominations, and sizes were reduced.
  • The first banknote from the new series — of Rs 2,000 denomination — was introduced on November 8, 2016, with the theme of Mangalyaan.
  • Subsequently, banknotes in this series in denominations of Rs 500, Rs 200, Rs 100, Rs 50, Rs 20, and Rs 10 were introduced.