Who supplies money in India?

By Ritesh|Updated : September 6th, 2022

India's currency is managed by the Reserve Bank of India (RBI), which has its headquarters in Mumbai. The bank is also overseeing the nation's credit systems and utilizing monetary policy to maintain financial stability in India.

  • Before 1934, printing currency was the responsibility of the Indian government.
  • However, the Reserve Bank of India Act, passed in 1934, gave the RBI responsibility for currency control.
  • The RBI Act of Section 22 specifically grants the bank the authority to print banknotes.
  • At Salboni, Mysore, and Dewas, the Reserve Bank of India operate printing operations.

Supply of Money in India

  • The Reserve Bank of India (RBI) manages and prints banknotes in India.
  • The Government of India decides the face value of the notes that should circulate in the economy.
  • The money that can be included in the economy is called the money supply.
  • RBI uses 4 different methods to measure the money supply in India.
  • Although the RBI has the power to print Indian currency, the government still has the final say in most Reserve Bank actions.
  • The Reserve Bank has the right to print notes up to 10,000 rupees.
  • Government officials rely heavily on the advice of Reserve Bank executives to make these final decisions.
  • The Government of India mints coins directly, unlike the Reserve Bank of India, which prints currency.
  • In four mints, coins are produced.

Summary:

Who supplies money in India?

The Reserve Bank of India (RBI) supplies money to India, and Banknotes are managed and printed by them. The Government of India mints coins directly, unlike the Reserve Bank of India, which prints currency.

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