Who supplies Money in India?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
The Reserve Bank of India (RBI) supplies money to India. The headquarter of RBI is located in Mumbai. The bank is overseeing the country’s credit systems and uses monetary policy to maintain financial stability in India. Before 1934, the responsibility of printing the currency was with the Government of India. However, the Reserve Bank of India Act passed in 1934 gave the responsibility of currency control to the RBI.
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Supply of Money in India
Section 22 of the RBI Act expressly grants the bank the authority to print banknotes. The Reserve Bank of India operates printing operations in Salboni, Mysore, and Dewas. The Reserve Bank of India (RBI) manages and prints banknotes in India.
The face value of the notes that should circulate in the economy is determined by the Government of India. The money supply refers to the amount of money that can be included in the economy. The RBI measures the money supply in India using four different methods.
Read: What is Call Money in India?
- Although the RBI has the authority to print Indian currency, the government retains final authority over most Reserve Bank decisions.
- The Reserve Bank has the authority to print notes in denominations of up to 10,000 rupees.
- To make these final decisions, government officials heavily rely on the advice of Reserve Bank executives. Coins are made in four minutes.
Summary:
Who supplies Money in India?
The Reserve Bank of India (RBI) is given the responsibility of supplying money to India. It also manages and prints banknotes. Unlike the Reserve Bank of India, which prints currency, the Government of India mints coins directly.
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