Indian currency is one of the most reliably asked economy topics, and almost all of it turns on a single distinction that candidates get wrong: the Reserve Bank issues banknotes, but the Government of India issues all coins and the one-rupee note. Once that is fixed, the rest of the topic — printing presses, mints, mint marks, security features and the devaluation and demonetisation dates — falls into place. This post covers all of it, with previous year questions at the end.
Key Points (Quick Revision)
- RBI issues all banknotes except the ₹1 note, under Section 22 of the RBI Act, 1934
- The ₹1 note and all coins are issued by the Government of India
- The ₹1 note is signed by the Finance Secretary, not the RBI Governor
- Minimum Reserve System since 1957 — ₹200 crore reserve, of which ₹115 crore in gold
- Devaluations of the rupee — 1949, 1966 and 1991; demonetisations — 1946, 1978 and 2016
1. Who issues what
| Item | Issued by | Signed by |
|---|---|---|
| Banknotes of ₹2 and above | Reserve Bank of India | The RBI Governor |
| ₹1 note | Government of India | The Finance Secretary |
| All coins | Government of India | — |
This table answers more questions than any other fact in the topic. The RBI's sole right to issue banknotes comes from Section 22 of the Reserve Bank of India Act, 1934. Coins are issued under the Coinage Act, 2011, and although the Government issues them, they are put into circulation through the RBI — a distinction papers exploit by offering both as options.
The Minimum Reserve System has applied since 1957. Under it the RBI must hold a minimum reserve of ₹200 crore, of which ₹115 crore is in gold and the rest in foreign securities, against which it may issue any amount of currency. Before 1957 India followed the Proportional Reserve System.
Two more institutional facts are asked regularly. The rupee symbol ₹ was adopted in 2010 and was designed by D. Udaya Kumar. And decimal coinage was introduced in 1957, replacing the annas and pies system.
2. Where notes are printed and coins are minted
| Facility | Location | Run by |
|---|---|---|
| Currency presses | Nashik, Maharashtra | Security Printing and Minting Corporation of India (SPMCIL) |
| Dewas, Madhya Pradesh | ||
| Currency presses | Mysuru, Karnataka | Bharatiya Reserve Bank Note Mudran (BRBNMPL), an RBI subsidiary |
| Salboni, West Bengal | ||
| Mints | Mumbai, Kolkata, Hyderabad, Noida | SPMCIL |
Four presses and four mints is the shape to remember, and the ownership split is asked: the Nashik and Dewas presses are government-owned through SPMCIL, while Mysuru and Salboni belong to an RBI subsidiary.
The mint marks are a favourite question because they are invisible unless you know to look for them, printed just below the year on a coin.
| Mint | Mark below the year |
|---|---|
| Mumbai | Diamond |
| Kolkata | No mark |
| Hyderabad | Star |
| Noida | Dot |
Kolkata having no mark is the trick in this table — the absence is itself the identifier, and questions are often framed as which mint leaves no mark.
3. Devaluation and demonetisation — the dates
| Event | Year | Context |
|---|---|---|
| Devaluation of the rupee | 1949 | First devaluation, under the post-war sterling adjustment |
| 1966 | After the wars and drought, with Indira Gandhi as Prime Minister | |
| 1991 | During the balance of payments crisis, in two steps | |
| Demonetisation | 1946 | ₹1,000 and ₹10,000 notes withdrawn |
| 1978 | ₹1,000, ₹5,000 and ₹10,000 notes withdrawn, under Morarji Desai | |
| 2016 | ₹500 and ₹1,000 notes withdrawn; new ₹500 and ₹2,000 notes issued |
Three devaluations and three demonetisations, and the pairs are asked against each other. Keep them apart by asking what changed: devaluation lowers the external value of the rupee, while demonetisation withdraws the legal-tender status of particular notes.
Two follow-up facts are asked with the 2016 event. The ₹2,000 note was introduced in November 2016, and it was withdrawn from circulation in May 2023 — withdrawn, not demonetised, since it remains legal tender. The highest denomination note in circulation is now ₹500.
4. Note series and security features
The current notes belong to the Mahatma Gandhi New Series, introduced in 2016, which replaced the Mahatma Gandhi Series of 1996. Each denomination in the new series carries a distinct colour and a motif of an Indian heritage site on the reverse.
The security features are asked as a list, and these are the ones that recur:
- Watermark — the Mahatma Gandhi portrait and an electrotype denomination, visible against light
- Security thread — windowed and inscribed, changing colour on higher denominations
- Latent image — the denomination appearing when the note is held at an angle
- Micro-lettering between the portrait and the vertical band
- Intaglio printing — raised print felt by touch
- See-through register — half the numeral on each side, completing when held to light
- Optically variable ink — the numeral shifting colour on higher denominations
- Identification mark — a raised geometric shape for visually impaired users, different for each denomination
- Angular bleed lines — raised lines whose number identifies the denomination by touch
The identification mark and the bleed lines are asked together, because both exist for the same purpose — letting visually impaired users identify a denomination by touch alone.
Banknotes carry the denomination in Hindi and English on the front and in fifteen other Indian languages on the language panel, making seventeen languages in all. That count is a recurring question.
5. Related terms worth knowing
| Term | What it means |
|---|---|
| Legal tender | Money that must be accepted in settlement of a debt |
| Limited legal tender | Coins, which are legal tender only up to specified amounts |
| Currency chest | Bank branches where RBI stocks of notes and coins are held |
| Clean Note Policy | RBI policy of withdrawing soiled notes and issuing good-quality ones |
| Soiled and mutilated notes | Exchanged at banks under the RBI Note Refund Rules |
| Star series | Replacement notes carrying a star in the number panel |
| Fiat money | Money with value by government declaration rather than intrinsic worth |
| e-Rupee (CBDC) | The RBI's central bank digital currency, a digital form of the rupee |
Coins are only limited legal tender while banknotes are unlimited legal tender — a distinction asked directly. And the star series question is a common one: a star in the number panel marks a replacement note, and it is perfectly valid.
6. Previous year questions
- Who issues the one-rupee note in India? — The Government of India
- The one-rupee note carries whose signature? — The Finance Secretary
- Under which section of the RBI Act does the RBI issue banknotes? — Section 22
- Coins in India are issued under which Act? — The Coinage Act, 2011
- What is the minimum reserve the RBI must hold? — ₹200 crore, of which ₹115 crore in gold
- In which year was the Minimum Reserve System adopted? — 1957
- Who designed the Indian rupee symbol? — D. Udaya Kumar
- In which year was the rupee symbol adopted? — 2010
- Currency notes are printed at which four places? — Nashik, Dewas, Mysuru and Salboni
- Which mint leaves no mint mark on coins? — Kolkata
- Which mint mark identifies the Hyderabad mint? — A star
- In which years was the Indian rupee devalued? — 1949, 1966 and 1991
- Demonetisation in India took place in which years? — 1946, 1978 and 2016
- In how many languages does a banknote show its denomination? — Seventeen, Hindi and English plus fifteen on the language panel
- What does a star in the number panel of a note indicate? — A replacement note of the star series
7. How to revise this topic
Start with the issuing table, because half the questions come from it. RBI for notes above one rupee, Government for the one-rupee note and all coins, Finance Secretary's signature on the one-rupee note. Three lines, and they answer a whole block of the paper.
Then take the numbers in one pass: 1934 for the RBI Act, 1957 for the Minimum Reserve System and decimal coinage, 2010 for the symbol, 2011 for the Coinage Act. Group the devaluation years and the demonetisation years as two separate triples rather than mixing them, since that is exactly how the options are built.
Keep the four presses and four mints together with the mint marks, and note that Kolkata's identifier is the absence of a mark. Finally, run the security features as a list you can recite, because the question is usually framed as which of the following is not a security feature.
8. Frequently Asked Questions
Who issues the one-rupee note in India?
The Government of India, through the Ministry of Finance, and it carries the signature of the Finance Secretary. Every other denomination of banknote is issued by the Reserve Bank of India and signed by the Governor. All coins are also issued by the Government.
What is the Minimum Reserve System?
The system in force since 1957 under which the RBI must hold a minimum reserve of ₹200 crore, of which ₹115 crore is in gold and the remainder in foreign securities, against which it may issue any amount of currency. It replaced the earlier Proportional Reserve System.
Where are Indian currency notes printed?
At four presses — Nashik and Dewas, run by the Security Printing and Minting Corporation of India, and Mysuru and Salboni, run by an RBI subsidiary. Coins are minted at Mumbai, Kolkata, Hyderabad and Noida.
How do I identify which mint made a coin?
By the mark just below the year. A diamond means Mumbai, a star means Hyderabad, a dot means Noida, and no mark at all means Kolkata. The absence of a mark is the identifier for Kolkata, which is how the question is usually framed.
Is the ₹2,000 note still legal tender?
It was withdrawn from circulation in May 2023 rather than demonetised, and the distinction matters for exam purposes. The highest denomination note in circulation is now ₹500. Since arrangements around withdrawn notes have changed over time, confirm the current position from the RBI before relying on it.
For more Economy topics in simple language, see our RBI and its Functions and Nationalisation of Banks posts, or browse the Economy section. Preparing for a bank exam? Start with the IBPS Clerk guide or join the 100 Hour GS Course.