CHAPTER 4
CURRENCY AND
RESOURCE ARRANGEMENTS
4.1 In Paragraph 3.28 a brief reference has been
made to the Currency and Resource arrangements in India. This chapter is
intended to deal in some detail with the broad principles and general
arrangements.
Currency
4.2 The currency of India consists of coins
issued under the Indian Coinage Act, 1906 as amended from time to time, one
rupee notes issued by the Ministry of Finance and bank notes issued by Reserve
Bank of India. Under the provisions of the Reserve Bank of India Act, 1934 the
sole right to issue bank notes in India has been vested in the Reserve Bank
with effect from April, 1935.
സമയാസമയങ്ങളിൽ ഭേദഗതി വരുത്തിയ ഇന്ത്യൻ നാണയനിയമം 1906 പ്രകാരം പുറത്തിറക്കിയ നാണയങ്ങൾ, ധനമന്ത്രാലയം പുറത്തിറക്കിയ ഒരു രൂപ നോട്ടുകൾ, റിസർവ് ബാങ്ക് നൽകിയ ബാങ്ക് നോട്ടുകൾ എന്നിവയാണ് ഇന്ത്യയുടെ കറൻസിയിൽ അടങ്ങിയിരിക്കുന്നത്. റിസർവ് ബാങ്ക് ഓഫ് ഇന്ത്യ ആക്റ്റ്, 1934 ലെ വ്യവസ്ഥകൾ പ്രകാരം, ഇന്ത്യയിൽ ബാങ്ക് നോട്ടുകൾ നൽകാനുള്ള ഏക അവകാശം 1935 ഏപ്രിൽ മുതൽ പ്രാബല്യത്തിൽ വരുന്ന റിസർവ് ബാങ്കിൽ നിക്ഷിപ്തമാണ്.
4.3 Under Section 14 of the Indian Coinage Act,
1906 the following coins have been issued since April 1957:
Silver
Alloy- Rupees ten.
Pure
Nickel- One Rupee, 50 pause and 25 paise
Aluminium
Bronze- 20 paise, and 10 paise
Cupro
Nickel- 10 paise, 5 paise, and 2 paise
Bronze- 1
paise
Aluminium
Magnesium- 5 paise, 3 paise, 2 paise and 1 paisa.
🆀Coins are issued under section __________ of the Indian Coinage Act, 1906.
A:-14
B:-17
C:-24
D:-34
Correct Answer:- Option-A
4.4 The rupee is legal tender up to any amount, the 50 paise coins for
any sum not exceeding ten rupees and other coins not exceeding one rupee.
🆀The Rupee is legal tender upto _________.
A:-One crore
B:-Any amount
C:-One Rupee
D:-Ten Rupees
Correct Answer:- Option-B
4.5 Bank notes issued by the Reserve Bank are of denominational values
of two rupees, five rupees, ten rupees and one hundred rupees in Ashoka Pillar
and Mahatma Gandhi designs and are legal tender, throughout India.
🆀 Bank notes issued by ________ are legal tender through out India.
A:-Government
B:-State Bank of India
C:-Nationalised Banks
D:-Reserve Banks of India
Correct Answer:- Option-D
4.6 One rupee notes issue by the Central Government are unlimited
legal tender, and these notes are treated as rupee coin for all purposes of the
Reserve Bank of India Act.
4.7 Under Section 39 of the Reserve Bank of India Act, the Bank is
required to issue rupee coin on demand in exchange for Bank notes and currency
notes of the Government of India and issue currency notes or Bank notes on
demand in exchange for coin which is legal tender under the Indian Coinage Act,
1906. The bank supplies in exchange for currency notes or Bank notes of two
rupees or upwards, currency notes or bank notes of lower value or other coins
which are legal tender under the Indian Coinage Act, 1906 in such quantities as
may, in the opinion of the bank be required for circulation. Although no person
has a legal claim to obtain coins for notes presented at a treasury or a sub
treasury this accommodation is given whenever possible and all applications for
exchange are granted provide that the coins or notes applied for are available
subject to limitation imposed by the Reserve Bank or the Central Government.
Resource
4.8 The control of the Resource operations of
the Government of India and of States, vests in the Reserve Bank. This work is
conducted under the Reserve Bank. This work is conducted under the control of the
Bank by a number of currency officers each of whom is in charge of an Issue
Department of the Bank and is responsible for the work of one or more States
within his jurisdiction.
ഇന്ത്യാ ഗവൺമെന്റിന്റെയും സംസ്ഥാനങ്ങളുടെയും റിസോഴ്സ് പ്രവർത്തനങ്ങളുടെ നിയന്ത്രണം റിസർവ് ബാങ്കിലെ നിക്ഷിപ്തമാണ്. റിസർവ് ബാങ്കിന് കീഴിലാണ് ഈ പ്രവർത്തനം. ബാങ്കിന്റെ ഒരു ഇഷ്യു ഡിപ്പാർട്ട്‌മെന്റിന്റെ ചുമതലയുള്ള നിരവധി കറൻസി ഓഫീസർമാരാണ് ബാങ്കിന്റെ നിയന്ത്രണത്തിലുള്ള ഈ പ്രവൃത്തി നടത്തുന്നത്, കൂടാതെ അദ്ദേഹത്തിന്റെ അധികാരപരിധിയിലെ ഒന്നോ അതിലധികമോ സംസ്ഥാനങ്ങളുടെ പ്രവർത്തനത്തിന് ഉത്തരവാദിത്തമുണ്ട്.
4.9 The cash balance of each Government is made
up of the balance in its account with the Reserve Bank and the balances at its
treasuries and sub-treasuries situated at places where the cash business is not
conducted by the Reserve Bank of India and its branches and agencies.
At places where the cash business is conducted by the bank, Government receipts are paid into and all Government disbursements are made from the Bank and the Bank is responsible for the distribution and maintenance of funds according to requirements at these places. This is arranged by that Currency Offices. Each Government is responsible for keeping in its accounts at the Reserve Bank a sum sufficient to enable the Bank to meet the disbursements which the bank has to make on its account at its various branches and agencies. At treasuries and sub-treasuries situated at places where there is no branch or agency of the Bank, Government holds the Treasury Officer responsible for keeping sufficient funds to meet all Government disbursements and for maintaining the balances as low as possible in order that money may not be locked up unnecessarily.
At places where the cash business is conducted by the bank, Government receipts are paid into and all Government disbursements are made from the Bank and the Bank is responsible for the distribution and maintenance of funds according to requirements at these places. This is arranged by that Currency Offices. Each Government is responsible for keeping in its accounts at the Reserve Bank a sum sufficient to enable the Bank to meet the disbursements which the bank has to make on its account at its various branches and agencies. At treasuries and sub-treasuries situated at places where there is no branch or agency of the Bank, Government holds the Treasury Officer responsible for keeping sufficient funds to meet all Government disbursements and for maintaining the balances as low as possible in order that money may not be locked up unnecessarily.
Funds in India
കറൻസി ഓഫീസർമാർക്ക് അവരുടെ അധികാരപരിധിയിലെ ഫണ്ട് വിതരണത്തിന്റെ ഉത്തരവാദിത്തമുണ്ട്. എല്ലാ ട്രഷറികളും തങ്ങളുടെ അധികാരപരിധിയിലെ എല്ലാത്തരം നാണയങ്ങളും നോട്ടുകളും വേണ്ടത്ര വിതരണം ചെയ്യേണ്ടതും ട്രഷറികൾക്കും ബാങ്കിനും ഇടയിൽ ഫണ്ട് കൈമാറ്റം ചെയ്യുന്നതിനും ട്രഷറികൾക്കും കറൻസികൾക്കുമിടയിൽ നോട്ടുകളും നാണയങ്ങളും അയയ്ക്കുന്നതിനും ക്രമീകരിക്കേണ്ടത് കറൻസി ഉദ്യോഗസ്ഥരുടെ കടമയാണ്. ഓഫീസുകൾ.
4.11 The transfer of funds between treasuries
and sub-treasuries and branches and agencies of the Reserve Bank is effected
for the most part through the medium of currency chests belonging to the
Reserve Bank of India. These chests are maintained at Non-Banking treasuries
and sub treasuries to prevent the unnecessary locking up of funds in treasury
balances and to facilitate the transfer of funds from and to such balances.
Under the provisions of the Reserve Bank of India Act, the amount of currency
and bank notes in circulation which constitute the liabilities of the Issue
Department of the Bank should not exceed the assets of that Department held in
gold, sterling securities, rupee coin (including rupee notes) and rupees
securities. A portion of these assets is held in the various currency chests in
the form of rupee coins and rupee notes. The currency and bank notes held in
these chests are not notes in circulation but pass into circulation only when
they are transferred to the treasury balances. Assuming that there are no
transactions elsewhere, the deposit of currency and bank notes in a currency
chest decreases the amount of such notes in circulation and the deposit of
rupees and rupee notes in the chest increase the assets of the issue Department
of the Bank. A deposit of notes or coin in a currency chest thus enables the
bank to issue notes elsewhere up to the amount deposited without increasing the
total amount of notes in circulation. If, therefore, a transfer of funds from
the treasury balance at ‘A’ to the treasury balance at ‘B’ is required, this
can be effected at short notice and without the actual remittance of coins and
notes by transferring money from the treasury balance to the currency chest at
“A’ and transfer of the same amount from the currency chest to the treasury
balance at ‘B’. A currency chest thus enables the treasury balance at a
treasury or a sub-treasury to be kept at a low figure as it is always possible
to replenish the balance quickly by a transfer of money from the currency chest
wherever funds are required in Treasury. It also obviates the necessity for
frequent remittances of coins and notes as surplus funds can always be
deposited into the currency chests and made available for use elsewhere,
pending a convenient occasion for remittance.
4.12 The Reserve Bank of India
provides facilities to the Public for remittance of moneys from one place to
another. These remittances are arranged for by the issue of Telegraphic
transfers or Reserve Bank drafts to and from places where the Reserve Bank has
its own offices or is represented by its agencies. In order to provide similar
facilities for the remittance of moneys form and to places where there is no
office of the Reserve Bank or branch of the State Bank and to discourage the
remittance of notes through the posts by the Public, Telegraphic Transfers and
Reserve Bank drafts are also issued by Government treasuries acting as Treasury
Agencies of the Reserve Bank for the purpose.