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Guided by: Mr. SUHAIL ANWAR NIFT, NEW DELHI
Efforts by: RAHUL RANJAN SUNIL KUMAR
FOUNDATION PROGRAMME UG-TECH (BATCH - II) NATIONAL INSTITUTE OF FASHION TECHNOLOGY, NEW DELHI
We would like to express our heartiest gratitude to our ITP Mentor, Mr. Suhail Anwar sir for constant support and guidance, without whom the project would have been an impossible task. We would also like to thank the faculties of all the subjects for their guidance without whose classes and lectures, it would have been impossible to understand the micro level of the subjects. Mr. Balbir sir was excellent with their ELEMENTS OF DESIGN. Mr.Abid Bilal sir was perfect in their stuff in GEOMETRY. We had great knowledge base in our GENERAL SCIENCE with Mr. Anand Prakash sir, Mr. Sehagal sir & Miss Shilpika mam. Mr. Bala Siddhaarth sir was very much easily understandable with the complex terms in MATERIAL SCIENCE. Mr. Suhail Anwar sir was up to the mark with the commands of COMPUTER APPLICATION. We had a great experience of practicality in the study with Mrs Bhavana K. Verma mam in BUSINESS COMMUNICATION & ENVIRONMENTAL STUDIES.Ms. Archana mam was like a microscope with her refined ideas and experiences of the textile industry, we looked the industry through her eyes in OVERVIEW OF FASHION INDUSTRY. We would also like to thank our course co-coordinator, Mrs. Suruchi Mittar and batch incharge Miss Tulika mam for their assistance and support in all the fields of the project. At last we would like to thank our classmates and friends for their encouragement and co-operation.
Thanking you all. …………………………. (RAHUL RANJAN) ……………………………. (SUNIL KUMAR)
CONTENTS • INTRODUCTION • HISTORICAL EVOLUTION • MATERIAL USED IN MANUFACTURING • APPLICATION & PRECAUTIONS • DESIGN PERSPECTIVE • MECHANISM & FUNCTIONING
• • • • •
4-5 6-15 16-18 19-20 21-25 26-31 32-33 34-35 36-39 40-41 42
ENVIRONMENTAL ROLE & FUTURE ASPECTS
OTHER RELATED TERMS CONCLUSION & RECOMMENDATION BIBLOGRAPHY
A currency is a unit of exchange, facilitating the transfer of goods and services. It is a form of money, where money is defined as a medium of exchange (rather than e.g. a store of value). A currency zone is a country or region in which a specific currency is the dominant medium of exchange. To facilitate trade between currency zones, there are exchange rates i.e. prices at which currencies can be exchanged against each other. Currencies can be classified as either floating currencies or fixed currencies based on their exchange rate regime. In most cases, each country has monopoly control over its own currency. Member countries of the European Monetary Union are a notable exception to this rule, as they have ceded control of monetary policy to the European Central Bank.In cases where a country does have control of its own currency, that control is exercised either by a Central Bank or by a Ministry of Finance. In either case, the institution that has control of monetary policy is referred to as the monetary authority. Monetary authorities have varying degrees of autonomy from the governments that create them. In the United States, the Federal Reserve operates with full independence from the government..Several countries can use the same name, each for their own currency (e.g. Canadian dollars and US dollars), several countries can use the same currency (e.g. the euro), or a country can declare the currency of another country to be legal tender. For example, Panama and El Salvador have declared US currency to be legal tender, and from 1791-1857, spanish silver coins were legal tender in the United States. India has its currency as rupee which is a floating currency and used here only. As it is a floating currency it has its vibrational value with respect to other fixed currency. The Indian currency is called the Indian National Rupee (INR) and the coins are called paise. One Rupee consists of 100 paise. 1 U.S. Dollar = 46.45 rupees 1 Euro = 58.48 rupees (as on 04/12/2005)
At present, notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. These notes are called bank notes as they are issued by the Reserve Bank of India (Reserve Bank). The printing of notes in the denominations of Re.1 and Rs.2 has been discontinued as these denominations have been coinised. However, such notes issued earlier are still in circulation. The printing of notes in the denomination of Rs.5 had also been discontinued; however, it has been decided to reintroduce these notes so as to meet the gap between the demand and supply of coins in this denomination. Coins in India are available in denominations of 10 paise, 20
paise, 25 paise, 50 paise, one rupee, two rupees and five rupees. Coins up to 50 paise are called 'small coins' and coins of Rupee one and above are called 'Rupee Coins’. The Reserve Bank can also issue notes in the denominations of one thousand rupees, five thousand rupees and ten thousand rupees, or any other denomination that the Central Government may specify. There cannot, though, be notes in denominations higher than ten thousand rupees in terms of the current provisions of the Reserve Bank of India Act, 1934. Coins can be issued up to the denomination of Rs.1000. The Reserve Bank manages currency in India. The Government, on the advice of the Reserve Bank, decides on the various denominations. The Reserve Bank also coordinates with the Government in the designing of bank notes, including the security features. The Reserve Bank estimates the quantity of notes that are likely to be needed denomination-wise and places the indent with the various presses through the Government of India. The notes received from the presses are issued and a reserve stock maintained. Notes received from banks and currency chests are examined. Notes fit for circulation are reissued and the others (soiled and mutilated) are destroyed so as to maintain the quality of notes in circulation. The Reserve Bank derives its role in currency management on the basis of the Reserve Bank of India Act, 1934. The Reserve Bank decides upon the volume and value of bank notes to be printed. The quantum of bank notes that needs to be printed broadly depends on the annual increase in bank notes required for circulation purposes, replacement of soiled notes and reserve requirements. The Reserve Bank estimates the demand for bank notes on the basis of the growth rate of the economy, the replacement demand and reserve requirements by using statistical models. The Reserve Bank manages the currency operations through its offices located at Ahmedabad, Bangalore, Bhopal, Bhubaneshwar, Belapur(Navi Mumbai), Kolkata, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Kanpur, Lucknow, Mumbai (Fort), Nagpur, New Delhi, Patna and Thiruvananthapuram. These offices receive fresh notes from the note presses. Similarly, the Reserve Bank offices located at Kolkata, Hyderabad, Mumbai and New Delhi initially receive the coins from the mints. These offices then send them to the other offices of the Reserve Bank. The notes and rupee coins are stocked at the currency chests and small coins at the small coin depots. The bank branches receive the bank notes and coins from the currency chests and small coin depots for further distribution among the public. To facilitate the distribution of notes and rupee coins, the Reserve Bank has authorised selected branches of banks to establish currency chests. These are actually storehouses where bank notes and rupee coins are stocked on behalf of the Reserve Bank. At present, there are over 4422 currency chests. The currency chest branches are expected to distribute notes and rupee coins to other bank branches in their area of operation. Some bank branches are also authorised to establish small coin depots to stock small coins. There are 3784 small coin depots spread throughout the country. The small coin depots also distribute small coins to other bank branches in their area of operation. The responsibility for coinage vests with Government of India on the basis of the Coinage Act, 1906 as amended from time to time. The designing and minting of coins in various denominations is also attended to by the Government of India. The Government of India decides upon the quantity of coins to be minted.
HISTORY OF CURRENCY The origin of currency is the creation of a circulating medium of exchange based on a store of value. Currency evolved from two basic innovations: the use of counters to assure that shipments arrived with the same goods that were shipped, and the use of silver ingots to represent stored value in the form of grain. Both of these developments had occurred by 2000 BC. This first stage of currency, where metals were used to represent stored value, and symbols to represent commodities, formed the basis of trade in the Fertile Crescent for over 1500 years. Coinage Coins were supposed as store of value being the metal itself, the face value of a coin was the same as its intrinsic value: at first silver, then both silver and gold. Metals were mined, weighed, and stamped into coins. This was to assure the individual taking the coin that he was getting a certain known weight of precious metal. Coins could be counterfeited, but they also created a new unit of account, which helped lead to banking. It was with Archimedes' principle that the next link in currency occurred: coins could now be easily tested for their fine weight of metal, and thus the value of a coin could be determined, even if it had been shaved, debased or otherwise tampered with. In most major economies using coinage, copper, silver and gold formed three tiers of coins. Gold coins were used for large purchases, payment of the military and backing of state activities. Silver coins were used for large, but common, transactions, and as a unit of account for taxes, dues, contracts and fealty, while copper coins represented the coinage of common transaction. The Era of Hard and Credit Money Paper money was, in one sense, a return to the oldest form of currency: it represented a store of value backed by the credibility of the issuing authority. Drafts and checks issued privately had been in intermittent use for centuries, however, it was with the rise of global trade that paper money would find a permanent place in currency. The advantages of paper currency were numerous: it reduced transport of gold and silver, and thus lowered the risks; it made loaning gold or silver at interest easier, since the specie (gold or silver) never left the possession of the lender until someone else redeemed the note; and it allowed for a division of currency into credit and specie backed forms. It enabled the sale of stock in joint stock companies, and the redemption of those shares in paper.
However, these advantages held within them disadvantages. First, since a note has no intrinsic value, there was nothing to stop issuing authorities from printing more of it than they had specie to back it with. Second, because it created money that did not exist, it was subject to Gresham's Law: people would exchange money rather than coins of the same value, and this increased the velocity of money and therefore increased inflationary pressures, a fact observed by David Hume in the 18th century. The result is that paper money would often lead to an inflationary bubble, which would then collapse when the demand for paper notes fell to zero, and people began demanding hard money. The printing of paper money was also associated with wars, and financing of wars, and therefore regarded as part of maintaining a standing army.For these reasons, paper currency was held in suspicion and hostility. Legal Tender Era With the creation of central banks, currency underwent several significant changes. During both the coinage and credit money eras the number of entities which had the ability to coin or print money was quite large. One could, literally, have "a license to print money"; many nobles had the right of coinage. Royal colonial companies, such as the Massachusetts Bay Company or the British East India Company could issue notes of credit—money backed by the promise to pay later, or exchangeable for payments owed to the company itself. This led to continual instability of the value of money. The exposure of coins to debasement and shaving, however, presented the same problem in another form: with each pair of hands a coin passed through, its value grew less. The solution which evolved beginning in the late 18th century and through the 19th century was the creation of a central monetary authority which had a virtual monopoly on issuing currency, and whose notes had to be accepted for "all debts public and private". By 1900, most of the industrializing nations were on some form of gold standard, with paper notes and silver coins constituting the circulating medium. Governments too followed Gresham's Law: keeping gold and silver paid, but paying out in notes.
The Paper Money Era
Banknote is a kind of currency, and under many jurisdictions is used as legal tender. With coins, banknotes make up the cash forms of all modern money. With the exception of non-circulating high-value or precious metal commemorative issues, coins are generally used for lower valued monetary units, while banknotes are utilised for higher values. Paper money is Chinese origin. Originally, the value of money was determined by the intrinsic value of the material the money was made of, such as silver or gold. However, carrying around a lot of precious metal was cumbersome and often dangerous. As an alternative, banknotes would be issued. In financial terms, a note is a promise to pay someone money. Banknotes were originally a promise to pay the bearer an amount of precious metal stored in a vault somewhere. In this way the stored value (usually in gold or silver coins) backing the banknote could transfer ownership in exchange for goods or services.
Paper money originated in two forms: drafts, that is receipts for value held on account, and "bills", which were issued with a promise to convert at a later date.However the use of paper money as a circulating medium is intimately related to shortages of metal for coins. In the 600s there were local issues of paper currency in China and by 960 the Song Dynasty, short of copper for striking coins, issued the first generally circulating notes. . The first polymer banknote, the 1988 Australian $10 note (propelyne).
INDIAN CURRENCY Rupee is the name of Indian coin and currency. It was derived from a Sanskrit language word Rupya. Rupya literally means the wrought silver used as coins of trade or currency during 600-400 BCE (Before Common Era). Earliest Vedic literature (1500-600 BCE) from India mention coins as Satamanas, so far no specimens have been found. The coins issued by several Early Kingdoms from all over the India from 600-500 BCE were found. These coins have symbol of sun with six radiating arms. They are mostly referred as punch mark coins. Those symbols were still in use during Mauryan Empire, first empire set up in India by Indian emperor. Minting
large quantities of coins and using them as a means of trade transactions in India began during Mauryan period (500-400 BCE). Information about the ancient indian coinage came from two different sources. Panini, Sanskrit grammarian (c. 500 BCE) wrote about coins and various fractions suggesting that the concept of coins existed prior to 500 BCE. He mentioned Satamanas (sata= 100, manas = units) and Karshapana (32 ratti). Each unit was called Ratti, weighing 0.11 grams. Ratti is average weight of a Gunja seed. Second source was a book Arthasashtra (literally means science of money, figuratively means monetary policy). It was written in Sanskrit language by Kautilya, prime minister to the first Maurya emperor Chandragupta Maurya (c. 340-290 BCE). The book mentions several types of coins. Gold coins (Suvarnarupa), silver coins (Rupyarupa), copper coins (Tamararupa) and lead coins (Sisarupa). Rupa means form or shape. Example: Rupyarupa --- Rupya - wrought silver, rupa - form. Mauryas were followed by Indo-Bactrians (c. 185 - 50 BCE) and Kushanas (40-241 CE). These empires in the north used portraits of the kings, Greek gods or Indian gods on the coins. Satavahanas (120 - 300 CE) ruled central and southern India and issued coins with pictures of elephants, horses and also kings' portraits. Gupta Empire (320-540 CE) is considered as golden age of ancient India. Guptas minted coins using molds and dies to give uniformity in shape. Gupta coins portrayed pictures of royal activities and culture. Portraits of Hunter, horse rider, musician, goddess of wealth Lakshmi or goddess of learning Saraswathi were used on the coins. Around 600 B.C.E. During this time, quality and weight of silver bullion was standardized to reduce the inconvenience of weighing the silver bullion for every transaction. Indian coins were cut out of a sheet of silver and clipped to adjust them into proper weight. These coins were always made of pure silver not gold or electrum. Square, rectangular and round shapes were used to make these coins. These early coins were then impressed on one side with one to six punch marks of sun with six radiating arms. The later coins were impressed with designs on both sides. These punch marks were probably guarantee for the purity and weight of the coin by the king of local kingdom.
1/8 Karshapana circa 500 BCE Punch mark of sun with six radiating arms on reverse
Satamana (also known as bent bars) circa 500 BCE. Two punch marks of sun with six radiating arms on reverse on both ends of the silver bar.
The first coins of Indian subcontinent, minted 2600 years ago. It is beyond doubt that the first coins of India were minted just before 5th century BC in Madhyadesha i.e. central India. Although, few historian have suggested (based on Vedic records) that India minted perhaps the first coins of the world which were introduced even earlier than Lydian/Ionian coins, in 8th century BC; most scholars do not agree with this theory. Both, literary and archaeological evidence confirm that the Indians invented coinage somewhere between 5th to 6th century BC. The earliest coins of India are commonly known as punch-marked coins.
First coin of India (?) Before 5th Century BC Minted in Madhyadesha? Found near Mathura Silver unit seven punch marks Weight: 7.14 gm
EARLY INDIAN COINS:
DEVELOPMENT IN COINS WITH THE TIME
Coins of the following denominations were issued: INDO-BRITISH TIME 1/12 Anna 1/2 Pice 1/4 Anna Pice 1/2 Anna Anna 2 Annas 1/4 Rupee 4 Annas 8 Annas 1/2 Rupee Rupee n 15 Rupees India has been one of the earliest issuers of coins in the world (circa 6th Century BC).. The original Rūpaya was a silver coin weighing 178 grams. The coin has been used since then, even during the times of British India. Formerly the rupee was divided into 16 annas, 64 paise, or 192 pies. Decimalisation occurred in Ceylon (Sri Lanka) in 1869, India in 1957 and in Pakistan in 1961. Each Anna was subdivided into either 4 paise, or 12 pies. Among the earliest issues of paper rupees were those by the Bank of Hindostan (1770-1832), the General Bank of Bengal and Bihar (1773-75, established by
Warren Hastings), the Bengal Bank (1784-91), amongst others.In 1957, decimalisation occurred and the rupee was now divided into 100 Naye Paise. Notes issued by the Bank of Bengal can be categorised in the following three series. Unifaced series-The early notes of the Bank of Bengal were printed only on one side and were issued as one gold mohur and in denominations of Rs. 100, Rs. 250, Rs. 500. Commerce series-Later notes had a vignette representing an allegorical female figure personifying 'commerce'. The notes were printed on both sides. On the obverse the name of the bank and the denominations were printed in three scripts, viz., Urdu, Bengali and Devanagari. On the reverse of such notes was printed a cartouche with ornamentation carrying the name of the Bank. Brittania series-By late 1800s, the motif 'commerce' was replaced by 'Britannia'. The new banknotes had more features to prevent forgery. British India issues…………………………… Five Rupees, 1922 (The Paper Currency Act of 1861.) Victoria portrait series- The first set of British India notes were the 'Victoria Portrait' series issued in denominations of 10, 20, 50, 100 and 1000. These were unifaced, carried two language panels. The security features incorporated the watermark, the printed signature and the registration of the notes. Underprint series- The unifaced Underprint series was introduced in 1867 as the Victoria Portrait series was withdrawn in the wake of a spate of forgeries. George V seriesA series carrying the portrait of George V were introduced in 1923, and was continued as an integral feature of all paper money issues of British India. These notes were issued in denominations of Rs 5, 10, 50, 100, 500, 1000, 10,000
Reserve Bank issues during British India George VI profile portrait, RBI, 1937
George VI profile portrait changed to frontal portrait, RBI, 1943 The Reserve Bank of India was formally inaugurated on Monday, April 1, 1935 with its Central Office at Calcutta. Section 22 of the RBI Act, 1934, empowered it to continue issuing Government of India notes till its own notes were ready for issue. The bank issued the first five rupee note was issued bearing the portrait of George VI in 1938. This was followed by Rs. 10 in February, Rs 100 in March and Rs 1,000 and Rs 10,000 in June 1938. The first Reserve Bank issues were signed by the second Governor, Sir James Taylor. In August 1940, the one-rupee note was reintroduced as a war time measure, as a Government note with the status of a rupee coin. During the war, the Japanese engaged in high quality forgeries of the Indian currency. This necessitated a change in the watermark. The profile portrait of George VI was changed to his full frontal portrait. The security thread was introduced for
the first time in India. The George VI series continued till 1947 and thereafter as a frozen series till 1950 when post independence notes were issued. Republic of India Issues
Two Rupees, Republic of India- After Independence of India, the government brought out the new design Re. 1 note in 1949. Initially it was felt that the King's portrait be replaced by a portrait of Mahatma Gandhi. Finally however, the Lion Capital of Asoka was chosen. The new design of notes were largely along earlier lines. In 1953, Hindi was displayed prominently on the new notes. The economic crisis in late 1960s led to a reduction in the size of notes in 1967. High denomination notes, like Rs. 10,000 notes were demonetised in 1978. Mahatma Gandhi series
The 'Mahatma Gandhi Series' was introduced in 1996. Prominent new features included a changed watermark, windowed security thread, latent image and intaglio features for the visually handicapped. Jammu and Kashmir issues- Maharaja Ranbir Singh introduced paper money on watermarked paper in 1877. The notes were not very popular and were in circulation for a very short period. The notes carried the 'Sun' motif of the Dogra family.
Hyderabad issues Hyderabad state OS Rs. 100 issue-- The Government of Hyderabad had made several efforts to organise private bankers to set up a banking company which could issued paper money. The British, however resisted the attempts of Indian states issuing paper currency. The acute shortage of silver during the First World War and the Indian and Hyderabad contributions to British war effort, led the British to accept in 1918 and paper currency in denominations of Rs. 10 and Rs.
100 was issued under the Hyderabad Currency Act. The currency was designated the Osmania Sicca (OS). Rupee One and Rupees Five notes were issued subsequently in 1919 and Rupees One Thousand notes were issued in 1926. After the setting up of the India Currency Notes Press at Nasik, Hyderabad notes came to be printed there. Burma issues- Burma separated from India in 1938; however, the Reserve Bank of India acted as Banker to the Government of Burma and was responsible for note issue in terms of the Burma Monetary Arrangements Order, 1937. In May 1938 the Bank issued Burma notes which were not legal tender in India.
French Indian 1 Rupee, 1938s
Portuguese Indian 1 Rupee, 1924
Persian Gulf issues- For many years in the early and mid 20th century, the Indian rupee was the official currency in several areas that were controlled by the British and governed from India; areas such as East Africa, Southern Arabia and the Persian Gulf. After India devalued the rupee on 6 June 1966, those countries still using it - Oman, Qatar and what is now the United Arab Emirates (known as the Trucial States until 1971) - replaced the Gulf Rupee with their own currencies. Kuwait and Bahrain had already done so in 1961 and 1965 respectively.
Emergency issues: Princely state states 1 Paisa coupon issued by Sayla
During the 1940s, when mints were occupied for use in the war, an acute scarcity of small coins was felt throughout India. Princely states in Western India like Balvan, Bikaner, Bundi, Gondal, Indergadh, Junagadh, Jasdan, Kutch Mengni, Muli, Morvi, Mangrol, Nawanagar, Nawalgarh Palitana, Rajkot, Sailana, Sayla, Vithalgadh, issued "Cash Coupons" to meet the shortage. Rupee coinage since the British period
One Rupee, Queen Victoria series, 1862 Quarter anna, George VI series,1945 The English coins of Western India developed along Mughal as well as English patterns. Acute shortage of silver during the First World War, led to the introduction of paper currency of One Rupee and Two and a half Rupees. The silver coins of smaller denominations were issued in cupro-nickel. The compulsion of the Second World War led to experiments in coinage where the standard rupee was replaced by the "Quaternary Silver Alloy". The Quaternary Silver coins were issued from 1940. In 1947 these were replaced by pure Nickel coins. The Anna Series was introduced on 15th August, 1950. this was the first coinage of Republic of India. The King's Portrait was replaced by the Asoka's Lion Capital. A corn sheaf replaced the Tiger on the one Rupee coin. The monetary system was retained with one Rupee consisting of 16 Annas. The 1955 Indian Coinage (Amendment) Act, that came into force with effect from 1st April 1957, introduced a Decimal series. With high inflation in the sixties, small denomination coins which were made of bronze, nickel-brass, cupro-nickel, and Aluminium-Bronze were gradually minted in Aluminium. This change commenced with the introduction of the new hexagonal 3 paise coin. A twenty paise coin was introduced in 1968 but did not gain much popularity. Over a period of time, cost benefit considerations led to the gradual discontinuance of 1, 2 and 3 paise coins in the seventies; Stainless steel coinage of 10, 25 and 50 paise, was introduced in 1988 and of one rupee in 1992. The very considerable costs of managing note issues of Re 1, Rs 2, and Rs 5 led to the gradual coinisation of these denominations in the 1990s . One "Naya" Paisa:
MATERIAL USED IN MANUFACTURING: A coin is usually a piece of hard material, generally metal and usually in the shape of a disc, which is issued by a government to be used as a form of money. Along with banknotes, coins make up the cash forms of all modern money systems. Coins are usually used for lower-valued units, and banknotes are usually used for the higher values; also, in most money systems, the highest value coin is worth less than the lowest-value note. The market exchange value of a coin comes from its historic value, and/or the intrinsic value of the component metal (for example gold or silver).However, in modern times, most coins are made of a base metal and their value comes strictly from their status as fiat money. This means that the value of the coin is decreed by government fiat rather than agreed by the people, which really make it less a coin and more a token in the strictest sense.
To distinguish between these two types of coins, as well as from other forms of tokens which have been used as money, monetary scholars have defined three criteria that an object must meet to be a "true coin". These criteria are: 1.It must be made of a valuable material, and trade for close to the market value of that material. 2.It must be of a standardized weight and purity. 3.It must be marked to identify the authority that guarantees the content. By the above definition, the invention and first known usage of coins comes from the Kingdom of Lydia circa 643-630 B.C. Under three generations of Lydian kings, the money of Lydia gradually moved from being lumps of electrum (a naturally occurring alloy of silver and gold) to coins of a guaranteed weight and purity, marked with the seal of the King. Elements Used for Coins – Aluminium, Antimony, Carbon, Chromium, Cobalt, Copper, Gold, Hafnium, Iron, Lead, Magnesium, Manganese, Molybdenum, Nickel, Niobium, Palladium Platinum, Rhenium, Selenium, Silver, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zinc & Zirconium. Alloys Used for CoinsAcmonital, Aluminium Bronze, Argentan, Barton's Metal, Bath Metal, Bell Metal, Billon, Brass, Bronze, Crown Gold, Cupro-nickel, Dow metal, Electrum, Franklinium, German Silver, Gun Metal, Manganese Bronze, Nickel Brass, Nickel Silver, Nordic Gold, Orichalchum, Pewter, Pinchbeck, Potin, Silver Alloys, Speculum, Stainless Steel, Steel, Tombac, Virenium & White Metal. Non-metals Used for Currency Carbon, Clay, Fibre, Glass, Leather, Paper, Plastic, Porcelain, Selenium, Stone. A Group 11 element is the series of elements in group 11 (IUPAC style) in the periodic table, consisting of transition metals which are the traditional coinage metals of copper (Cu), silver (Ag), and gold (Au). They are also known as the "noble metals." Gold coins are typically produced as either 90% gold (e.g. with pre-1933 US coins), or 22 carat. Silver coins are typically produced as either 90% silver - in the case of pre 1965 US minted coins (which were circulated in many countries), or sterling silver (92.5%) coins. Copper coins are often of quite high purity, around 97%, and are usually alloyed with small amounts of zinc and tin.
They are all relatively inert, corrosion-resistant metals which have been used for minting coins, hence their name. Many metals form colored compounds, such as iron pyrite, and many metals have a colored sheen, but apart from caesium, which also has 1 6selectron, similar to gold, only gold and copper are colored. These metals, especially silver, have unusual properties that make them essential for industrial applications outside of their monetary or decorative value. They are all excellent conductors of electricity. The most conductive of all metals are silver, copper and gold in that order. Silver is also the most thermally conductive element, and the most light reflecting element. Silver also has the unusual property that the tarnish that forms on silver is still highly electrically conductive. Gold, silver, and copper are quite soft metals and so are easily damaged in daily use as coins. Precious metal may also be easily abraded and worn away through use. In their numismatic functions these metals must be alloyed with other metals to afford coins greater durability. The alloying with other metals makes the resulting coins harder, less likely to become deformed and more resistant to wear. PHYSICAL & CHEMICAL PROPERTIES:Coins are made in such a way that chemically it becomes silent or rare reactive.Metals or alloys used in coin should be heat resistance, hard, tough and ductile.Most of the modern indian coins are made of cupro-nickel or Ferraite stainless steel. These materials are tensile as well as ductile also, both are chemically less reactive. These are tough and strong materials having good amount of fire resistance and heat resistance inside them.
Metal Weight Diameter Shape
Cupro-Nickel 9.00 gm 23 mm Circular
Metal Weight Diameter Shape
Ferratic Stainless Steel 4.85 gm 25 mm Circular
Metal Weight Diameter Shape
Ferratic Stainless Steel 3.79 gm 22 mm Circular
Metal Weight Diameter Shape
Ferratic Stainless Steel 2.83 gm 19 mm Circular
Metal Weight Diameter Shape
Ferratic Stainless Steel 2.00 gm 16 mm Circular
Metal Weight Diametre Shape
Cupro-Nickel 6.00 gm 26mm Eleven sided
APPLICATION & PRECAUTION
Currency is a medium of exchange. It requires handling and security precautions …. . Clean hands are essential to prevent undue oils and dirt transferring to the paper. Removing the banknote from its holder or sleeve should be done with care. By virtue of its nature, a piece of paper money has a limited life expectancy, which is directly proportional to the amount of handling it receives. The Rupee is called by various names in the different parts of India depending on the local language, including Taka, Tanka, Rubai and Rupaye. “When we die, our bodies turn into soil, which feeds trees, and when paper is made from those trees some of that paper goes to produce paper money (bank notes), banknotes you collect. Therefore please respect each other and let's respect the bank notes we collect and take good care of them. Banknotes Are Us” Security Features precaution of Indian Banknotes Watermark - The Mahatma Gandhi Series of banknotes contain the Mahatma Gandhi watermark with a light and shade effect and multidirectional lines in the watermark window. Security Thread - Rs.1000 notes introduced in October 2000 contain a readable, windowed security thread alternately visible on the obverse with the inscriptions ‘Bharat’ (in Hindi), ‘1000’ and ‘RBI’, but totally embedded on the reverse. The Rs.500 and Rs.100 notes have a security thread with similar visible features and inscription ‘Bharat’ (in Hindi), and ‘RBI’. When held against the light, the security thread on Rs.1000, Rs.500 and Rs.100 can be seen as one continuous line. The Rs.5, Rs.10, Rs.20 and Rs.50 notes contain a readable, fully embedded windowed security thread with the inscription ‘Bharat’ (in Hindi), and ‘RBI’. The security thread appears to the left of the Mahatma's portrait. Notes issued prior to the introduction of the Mahatma Gandhi Series have a plain, non-readable fully embedded security thread.
Latent Image - On the obverse side of Rs.1000, Rs.500, Rs.100, Rs.50 and Rs.20 notes, a vertical band on the right side of the Mahatma Gandhi’s portrait contains a latent image showing the respective denominational value in numeral. The latent image is visible only when the note is held horizontally at eye level. Mahatma notes of notes in glass. Microlettering - This feature appears between the vertical band and Gandhi portrait. It contains the word ‘RBI’ in Rs.5 and Rs.10. The Rs.20 and above also contain the denominational value of the micro letters. This feature can be seen better under a magnifying
Intaglio Printing - The portrait of Mahatma Gandhi, the Reserve Bank seal, guarantee and promise clause, Ashoka Pillar Emblem on the left, RBI Governor's signature are printed in intaglio i.e. in raised prints, which can be felt by touch, in Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 notes.
Identification Mark - A special feature in intaglio has been introduced on the left of the watermark window on all notes except Rs.10/- note. This feature is in different shapes for various denominations (Rs. 20-Vertical Rectangle, Rs.50-Square, Rs.100Triangle, Rs.500-Circle, and Rs.1000-Diamond) and helps the visually impaired to identify the denomination. Fluorescence - Number panels of the notes are printed in fluorescent ink. The notes also have optical fibres. Both can be seen when the notes are exposed to ultra-violet lamp. Optically Variable Ink - This is a new security feature incorporated in the Rs.1000 and Rs.500 notes with revised colour scheme introduced in November 2000. The numeral 1000 and 500 on the obverse of Rs.1000 and Rs.500 notes respectively is printed in optically variable ink viz., a colour-shifting ink. The colour of the numeral 1000/500 appears green when the note is held flat but would change to blue when the note is held at an angle. See through Register - The small floral design printed both on the front (hollow) and back (filled up) of the note in the middle of the vertical band next to the Watermark has an accurate back to back registration. The design will appear as one floral design when seen against the light. Legal provisions against counterfeiting Printing and circulation of forged notes are offences under Sections 489A to 489E of the Indian Penal Code and are punishable in the courts of law by fine or imprisonment or both. The Reserve Bank of India is the central bank of the country entrusted with monetary stability, the management of currency and the supervision of the financial as well as the payments system. Established in 1935, its functions and focus have evolved in response to the changing economic environment.
Modern day’s coins are simply circular in shape or having polygonal edges in its shape.
Coins have two faces ……Head & Tail In Head face most of them have portrait of any person, special sign or simply top of Ashoka pillar. In other parts of the world the head face of a coin consists the manufacturing year but most of Indian coins have it on its tail with the value of the coin. One can easily visualize the whole nation through the currency of the country. In Indian banknotes there are some specified criteria of design and size…..
Shape of Indian banknotes is generally rectangular…..
Denomination 1 2 5 10 20 50 100 500 1000
Length (cm) 9.7 10.7 11.7 13.7 14.7 14.7 15.7 16.7 17.7
Width (cm) 6.3 6.3 6.3 6.3 6.3 7.3 7.3 7.3 7.3
No. of squares (cm2) 61 67 74 86 93 107 115 122 129
2- Rupees note is considered nearly as a golden rectangle shape. The designing and minting of coins in various denominations is also attended to by the Government of India with RBI. All the coins and currency notes are issued the Reserve Bank of India, except the Re. 1 note which was traditionally issued by the Government of India until it was withdrawn from circulation.
ELEMENT OF DESIGN IN INDIAN CURRENCY: Colours:
Shapes, lines & motifs:
Pattern, design and collages:
Design with functions ---Currency of any country can represent the picture of whole country and the lifestyle through its various designs, color, texture etc. India is a diverse country so currency is also a medium for unity in diversity.
First image represents the various languages spoken in the country, second one shows the lifestyle as farming, 100 rupees reverse image shows courage and policy we adopted during our freedom struggle, 10 rupee shows the greenery beauty of India, another 10 rupee in grayish dull colour shows trading and sense of adaptability of India and the last one shows the amazing wild life of India. Generally the Indian banknotes consist images like farmer, ploughing, dam, sailboat, sunrise, wheel, palm tree, tractor, industry, parliament, tiger, peacock, rhino, earth, spacecraft, elephant, follower etc. Colors of the notes are functional, symbolic and visible even for effected eyes. Texture of the paper and printing are very significant and can easily identify the value of the note with touching it only.
Different looks of modern Indian currency (Contemporary Indian banknotes)
MECHANISM & FUNCTIONING
Money. is a medium of exchange. Money has no intrinsic value -- its usefulness would be lessened if it did. It works or functions on the credit system only. The bearer of the currency is promised to pay the face value of the note. The whole currency works on the theory--“I PROMISE TO PAY THE BEARER THE SUM OF …… RUPEES’’ GUARANTEED BY THE CENTRAL GOVERNMENT Rupee-.The Indian monetary unit, worth about 3 cents in exchange for U.S. money. Used in payment for services or purchase of goods made in India, it is the Indian equivalent of our dollar. Exchange rates fluctuate.The manufacturing mechanism of a coin can be divided into two main stages - a) making the blanks and b) manufacturing coins from the blanks. HARDCORE MECHANISM Printing process The earliest printing process, the woodcut, is produced by cutting away the unwanted part of a piece of wood. The design that is left in relief is inked up with a roller and transferred to paper. The design is drawn directly on the wood which is cut plank wise or along the length of the grain or tree trunk. Cut this way, however, the wood has a tendency to splinter. Artists discovered that they could avoid the problem by cutting on the end grain of hardwood blocks, a process called wood engraving. By using a burin, the wood engraver could produce a wider range of tones than were possible with a woodcut. This process was used on a few types of early style currency and in certain "emergency" cases where this was the only type of printing process available. Lithography Lithography was the first fundamentally new printing technology since the invention of relief printing in the fifteenth century. It is a mechanical Plano graphic process in which the printing and non-printing areas of the plate are all at the same level, as opposed to intaglio and relief processes in which the design is cut into the printing block. Lithography is based on the chemical repellence of oil and water. Designs are done with greasy ink or wax based tools on specially prepared stones or plates. They are then is moistened with a liquid, which the plate accepts in areas not covered by the wax. An oily ink, applied with a roller, adheres only to the drawing and is repelled by the wet parts of the plate. The print is then made by pressing paper against the inked drawing. Lithography was invented by Alois Senefelder in Germany in 1798 and, within twenty years, appeared in England and the United States. Almost immediately, attempts were made to print in colour. Multiple plates were used; one for each colour, and the print went through the press as many times as there were plates. The problem for the printers was keeping the image in register, making sure that the print would be lined up exactly each time it went through the press so that each color would be in the correct position and the overlaying colors would merge correctly.
Intaglio/Engraving The process of intaglio printing was and still is the most popular form used by banknote printing companies. It is an extremely time intensive process and requires the combined handiwork of highly skilled artists, steel engravers, and plate printers. Engraved printing plates are covered with ink and then the surface of each plate is wiped clean which allows the ink to remain in the "valleys" of the design and letter grooves of the plates. Each sheet is then forced, under extremely heavy pressure, into the finely recessed lines of the printing plate to pick up the ink. The printing impression is three-dimensional in effect creating "mountains of ink" on the banknotes. The height of these "mountains" depends upon the depth of the grooves that the engravers made on the plates, the quantity and type of ink used, and the pressure applied to force the paper into the plates. The surface of the note feels slightly raised, while the reverse side feels slightly indented. This process is called intaglio printing. Definition of Original Raised Ink An original banknote printed using the Intaglio process noted above will have definition of detail discernable by touch. There will be height to the ink. Different parts of the banknote will feel more raised up than others due to the fact that the engravers would engrave the plates at differing depths for different features of the banknote. As time goes by and the banknote gets circulated more and more, the height of the ink is slowly worn down until the note finally ends up looking "flat" and loses it's bright colours. If a banknote is washed or pressed, the "mountains" become flattened and loss of definition is noticeable. A true original high grade banknote will retain some or all of this original definition. Counterfeiting Counterfeiting banknotes pervades the entire history of paper money. Tools to aid in the battle against counterfeiting were and remain the finesse and complexity of design and printing techniques. Coupled with special papers and security features, banknote printing companies and issuing authorities ensure that their paper money would be very difficult to reproduce. The avid collector will encounter forged notes from time to time that even the untrained eye can detect. There are however examples in history whereby a sovereign nation or country has produced so-called "perfect" counterfeits of an enemy country. These were normally created and secretly sent into circulation in order to create inflation with the ultimate goal being to bring about the economic instability of the adversary. To the collector, identifying these counterfeits requires great experience. Paper Quality The quality of banknote paper is one of the characteristic features that distinguish a genuine banknote from a forgery.
Numbering Serial numbers are printed horizontally and vertically with asymmetrical fonts and different colours to make them more difficult to counterfeit. They are also printed with special inks which penetrates the paper. As a result, the trace of the numbers can still be seen under ultra-violet light if the numbers were to be tampered with. REFUNDING OF DAMAGED NOTESThe following notes are not payable under the Note Refund Rules. A note which is • less than half the area of the full note • devoid of the major portion of the number, i.e., the prefix and three digits or four digits of the number in notes up to and inclusive of Rs.5; in respect of notes of Rs.10 and above, where this inadequacy is present at both the numbering panels. • cancelled by any office of the Reserve Bank or against which the value has already been paid • found to be forged • deliberately cut, mutilated or tampered • carrying extrinsic words or visible representation intended to convey or capable of conveying any message of a political character. Ordinary notebook paper is made from the intermeshed cellulose fibers of wood pulp. The cellulose fibers absorb water and come apart (dissolve) when they are soaked in water. Paper money is made from textile (rag) fibers, such as cotton and linen. Intermeshed "rag" fibers bond together more firmly and don't separate (dissolve) in
water.The upper right corner (red arrow) of this currency bill is torn off. The magnified view (right) of the torn edge shows a fringe of intermeshed textile (rag) fibers. These fibers are much more durable than the cellulose fibers from wood pulp.
Process of making of a coin: Blanking cutting material as prescribed size
Annealing, Washing and Drying – cutted part for minting Upsetting The good their edges.
preparing or cleaning with heating
blanks go through an upsetting mill. This raises a rim around
Striking Finally, the the designs currency. Inspecting Press batch
blanks go to the coining press. Here, they are stamped with and inscriptions which make them genuine Indian coin
operators using magnifying glasses spot-check each newly struck coins.
Counting and Bagging coins and drops them into loaded onto pallets, and New coins are shipped by the coins go to your local
An automatic counting machine counts the large bags. The bags are sealed shut, taken by forklifts to the vaults for storage. truck to Reserve Bank Of India. From there, bank or chests.
MINT & CURRENCY PRESSES IN INDIA :
Noida New Delhi Jaipur Lucknow
Guwahati Kanpur Bhopal Ahamadabad Dew as Patna Salboni Calcutta Calcutta Nagpur Mumbai Mumbai Byculla Nasik Bhuaneshwar
Mint Issue Offices
DISTRIBUTION OF CURRENCY-
Agencies I nvolved
MOF Police Railways
Reserve Bank of I ndia
Flow of Notes & Coins
NOTES Chest branches COINS
Chest branches & RBI Offices Public
4 mint-linked RBI Offices
Reserve Bank of India
Wireless Vending packed many capacity
support (coin reader machine) Machine is suitable for all the commodities by box with various specifications such as cigarettes, condoms and films. It can contain small sizes of products because of its great and fits almost anywhere.
ADVANCED PRINTING AND MINTING MACHINES- Advanced reprographic technology improved dramatically during the 1990s. The technology is expected to continue to improve into the next century. Some types of equipment can accurately reproduce the colors and fine-line detail of security documents and are seen as a threat to currency.
ATM’sdevice accepting inquiries.
Automated Teller Machine. An unmanned electronic that performs basic teller functions, such as deposits, cash withdrawals, and account balance
CURRENCY (NOTE) COUNTING device which can count papernote .Able overlapped and damaged currency. With accumulation function. Able to currency by using fluorescent light to
MACHINEIt is a to discriminate automatic reset and discriminate forged check watermarks.
E-tokan/e-cheques –Currency transportation through electronic media or enternet. The concept delinks the cheque writing and signing. By providing the facility to sign the cheque anywhere in the world, it makes it easy for businesses to continue without requiring the physical collocation of the bill receiver, cheque writer and the cheque signer.
ADVANCED SECURITY FEATURESWatermark The watermark is formed by varying paper density in a small area during the papermaking process. The image is visible as darker and lighter areas when held up to the light. Since the watermark does not copy on color copiers or scanners, it makes it harder to use lower denomination paper to print counterfeit notes in higher denominations and is a good way to authenticate the note. It depicts the same historical figure as the engraved portrait.
Color-Shifting These inks, used in the numeral on the lower right corner of the face Inks of the note, change color when the note is viewed from different angles. The ink appears green when viewed directly and changes to black when the note is tilted. Fine-Line Printing Patterns This type of line structure appears normal to the human eye but is difficult for current copying and scanning equipment to resolve properly. The lines are found behind the portrait on the front and around the historic building on the back.
Enlarged Off- The larger portrait can incorporate more detail, making it easier to Center recognize and more difficult to counterfeit. It also provides an easy Portraits way for the public to distinguish the new design from the old. The portrait is shifted off center to provide room for a watermark and unique "lanes" for the security thread in each denomination. The slight relocation also reduces wear on most of the portrait by removing it from the center, which is frequently folded. The increased image size can help people with visual impairments identify the note. Low-Vision Feature The numeral, which represents the denomination, helps people with low vision, senior citizens and others as well because it is easier to read. Also, a machine-readable feature has been incorporated for the blind. It will facilitate development of convenient scanning devices that could identify the denomination of the note. Counterfeiter detector pen – It counterfeit or fake is a device which can detect the money easily.
ENVIRONMENTAL ROLES & FUTURE ASPECTS
A nation's currency is more than a medium of exchange. Symbols relating to its history and system of government, political leaders, political and social ideals, and economic and cultural achievements may be on it. With the help of the Indian rupee one can easily— • • • • Find and cite evidence of India's unity in diversity. Make inferences from minimal data. Recognize some of the complex interactions of a civilized community. Recognize geography, history, politics, economics, beliefs, and social values Clues to Indian history.
Currency simply tries to bind the whole country together. It brings unity out of so many diversities. It is the base of the Economy. The trading, business, sharemarket all depends upon the currency. Indian National Rupee is a fluctuating currency so its exchange value gets altered, it results the price raising or economical crisis type of situation, when the each individuals get affected and lots of bad results start to produce within the lifestyle or within the trading. So it can badly affect one’s lifestyle and make serious changes. In short we can say that 1 billion Indian are dependent on the behaviour of a rupee. It produces the difference of rich, middle class, poor and below poverty line (BPL). One can cross every limit for getting it. But it also produces good results it gives the feel that we all are Indians. There is no barrier within us. It also represents the lifestyle, social values, trading and technology to outside world. Clearly our currency shows our policy to the world.
All the languages spoken here have same respect same with the people. One can easily feel the happiness of having a thousand rupees note in pocket or at the same time can also feel the emotion when there is no rupee in pocket. Most of the problem can be solved with the help of these money notes. It is very essential to each aspect of life….. Health, education, entertainment etc. Since money is really just a representation of value, it didn't take long for people to realize they could just send information about money by telegraph or other electronic means, and it was just as "real" as sending the money itself. After World War II,
banks would record information about the day's transactions onto large magnetic reels, which were taken to the regional Federal Reserve Bank. This system eliminated the need for the large denominations that were printed prior to the war to facilitate these large-scale transfers. Today, the $500, $1,000, $5,000, and $10,000 bills printed during this period are very rare, though some are still in circulation. Later, wire connections were established between the banks, so the transfer information could be sent directly. By the early 1990s, all transfers between banks and the Federal Reserve were done electronically. There are three other important steps in the history of electronic money: 1. Diners Club issued the first credit card in 1950. At first, credit cards were considered a special perk available mostly to rich businessmen. As soon as banks realized there were billions of dollars to be made by issuing credit to as many people as possible, credit cards exploded. Today's largest credit card company, Visa, started out as the Bank of America, and issued the BankAmericard in 1958. Today, there are over 200 million Visa cards in use in the United States alone. 2. The Social Security Administration first offered automatic electronic deposit of money into bank accounts in 1975. Once people became comfortable with the concept of money being added to their accounts without ever holding the cash, the practice spread. People started paying bills, transferring money between accounts, and sending money electronically. 3. The growing worldwide acceptance of the Internet has made electronic currency more important than ever before. Purchases can be made through a Web site, with the funds drawn out of an Internet bank account, where the money was originally deposited electronically. People are earning and spending money without ever touching it. In fact, economists estimate that only 8 percent of the world's currency exists as physical cash. The rest exists only on a computer hard drive, in electronic bank accounts around the world.
OTHER RELATED TERMS
Anti-Scanner/Copier Patterns A coloured foil design is hot-stamped onto the paper and is over-printed in using a lithographic technique. When photocopying is used to reproduce the note, a black spot appears in place of the foil. Bearer Cheque A type of cheque payable to whoever possesses it, rather than to a specific person or organisation. They have occasionally served as currency, passing hands between successive people, until someone cashes it in. Block Numbers A number printed on a note, indicating the specific printing run. Not the same as the plate number or serial number. Cancellation A method used by authorized bodies to cancel a note's monetary value. Methods include hole-punching, signature removing, overprinting, etc Commemorative A note bearing reference to a historic event, person, or organisation. Usually issued on the anniversary of some major event of national significance. Demonetisation The official cancellation of a banknote's validity as currency, by government decree. Emergency Issues Notes issued during times of economic turmoil, usually when the country's national currency approaches worthlessness, or as a substitute for coins when metal is in short supply. Error Notes Notes with design errors such as spelling mistakes and notes with badly-printed features or other manufacturing faults. They are sought-after as collectibles.
Fantasy Note A novel or humorous banknote look-alike with no monetary validity, often with a make-believe denomination, and sometimes portraying a celebrity or fictional theme.
Grade The physical condition of a banknote; the degree of wear and tear. A minor difference in grade has a significant effect on value. Guerrilla Notes Paper money issued by guerrilla organisations, during enemy occupation of their country. Guilloche Embellishment found on some banknotes - a motif of intricate interweaving lines, created by a mechanical engraving machine, like an elaborate Spiro graph. Intaglio Printing Printing method using an engraved plate. Oil is applied to the surface of the plate. Ink is then applied, which, due to the oil, only adheres in the engraved grooves. The plate is then pressed onto the paper, where the ink held in the grooves transfers to the paper. Notaphily The word someone coined to mean 'banknote collecting'. It never really caught on, because many collectors don't like the sound of it, or feel it doesn't convey the fine qualities of this great hobby. Political Notes Banknote look-alikes printed with political messages or propaganda, often bearing a portrait or caricature of a newsworthy person or politician. Remainders Notes which were printed, but never issued. They sometimes lack authorising features such as signatures, dates etc.
Replacement Notes Notes from a sheet used to replace any sheet in a print run that failed to pass the quality control standards. They can be identified by their special serial number prefix. They are invariably more valuable than the normal banknotes due to their relative scarcity.
Reprint A note printed from the original plate, often by someone other than the original authorised printer, usually long after the note has become obsolete. These should not be confused with ordinary reproductions, which are not printed using the original plate and are worth much less as collectibles. Security Features Devices incorporated into banknotes to make forgery difficult, including foil security threads, micro-text, special inks, and silk threads imbedded in the paper. Serial Numbers The consecutive numbers printed on each successive banknote during a print run, using a mechanised numbering machine, to give each note a unique identity. Skit Notes Banknote look-alikes with a political, satirical or humorous theme. Specimen Notes Demonstration notes for private distribution to banks, etc., for identification purposes, just prior to the release of a new series. They are printed with the same equipment as the real item, but carry no monetary validity. To indicate this, they are usually overprinted or perforated with the word "SPECIMEN" in the language of the issuing country. Test Notes These items are produced for testing cash dispenser, ATM machines etc. They imitate the size and weight of the genuine banknotes, but are printed with designs significantly different from the real notes. Some bear the words "TEST NOTE". Vignette An isolated pictorial feature on a banknote or cheque etc., distinct from adjacent design elements. Black Money- Illegal access money, more than the income. Fake money/ counterfeit money -duplicate money, manufactured with forgery by non authorized body. Inflation It is when a certain form of currency starts to have less value over time. It is caused mainly by two things: people's perception of value, and the economic principle of supply and demand.
CONCLUSION & RECOMMENDATION
At a whole we see that India was one of the first countries to start coin for the purpose of exchange of things. Anciently it was based on intrinsic theory, which says
that the face value and the metallic intrinsic value of the coin should be same. After a few time when Maurya, Gupta etc came in power in medieval India the system of coin changed from intrinsic to extrinsic value in which coin are supposed to be equal to their face value, the system was based on credit system. Later the era of paper money came to India from its origin country China, Sher sah Suri introduced the paper money in India before that leather and plastic like polymers were used in manufacturing the currency. The paper money or banknotes bring the era of prosperity and development in the field of currency. Under British Empire India also come front in manufacturing of paper money. Reserve Bank of India is established with the view of monitoring the currency management in India. After republic various admonitions get cancelled and new system of decimal applied to the Indian currency in place of Ana system. Now the shape and size of Indian coin and notes are more impact and constructive. But the role of the currency never decreased, it increased all the time. Now it is not only the medium of exchange but it is symbol of the financial strength of the country. Currency also represents the lifestyle, social values, history, economy and policies of the nation. The manufacturing process of coins is minting & engraving with a pre-defined shape. Most of the coins of modern days are circular or poly-edged & banknotes are simply rectangular in shape. Cupro-nickel & stainless steel is mainly used in minting of Indian coins & textile fiber with textures matt paper is used in making of Indian banknotes. The whole currency management is monitored by Reserve Bank of India with its chests bank branches all over the country. The design of the currency is defined by RBI and Govt. of India. The bank note, used as a legal tender, consist the credit promise with the authorized signature of the Governor, RBI. The different design printed on the paper money shows the lifestyle, trading and policy of India. It also stands for the cultural, geometrical, political and economical identification of the nation. Transporting and distribution of Indian currency are monitored by RBI with the help of Indian railway, police, ministry of finance etc. The network of bank and the whole banking system of India is revolved around the currency; actually the banking system is started with the view to control the currency distribution and to help in currency management process. As Indian agencies involved in currency introduces advanced technology, so the quality and security level of Indian currency is getting upraised. It will also help in prevention of counterfeit money. With this the exchange value of Indian currency with respect to Dollar or Euro is getting strength day to day, therefore the future of Indian currency is very bright. Indian money is not only a medium of exchange or not just only for purchasing things but it is also a binding force and the best possible communication source. It also gives us the brand loyalty of India and make us remember and proud that we are a part of this amazing India.
RECOMMANDATION Indian currency is getting better in all the directions. Either it is advanced technology or banking system or security system or the capacity of printing and minting currency or prevention of fake currency. There are remarkable achievements all around. Simultaneously Indian rupee is getting strengthens in international market also.
So this is the best time to repair every possible weakness in the currency. And simply RBI should be more careful in preventing the fake money operations. It can be cure with the help of advanced hologram printing and introducing new designs and shapes of banknotes. Suggestion for coin……. RBI & Indian government should rethink on the value or denomination of coins which can bring more efficiency in function of the currency. Coins of face value Rs.3, Rs.9 & Rs.27 can make a difference in the whole system with pre-existing 1 rupee coin. We can easily purchase things up to the price of 40 rupees with the help of these four coins only and we will never feel the need of 2 rupees, 5 rupees and 10 rupees coin. The idea is little bit odd in view of decimal system of currency but surely it will work better. It can easily remove the problem of lack of the coins or the “CHILLAR” (khule paise). Coins…. Rs.1, Rs.3, Rs.9 & Rs.27 For example We have to purchase a pen of price Rs. 33. Now we have to give (27+9) coins and the retailer will return a three rupee coin. So simple and so easy Another example for price 29 rupees………. (27+3) -1 Coins should be circular in shape so that it can easily carry and handle, should be made of standard stainless steel, which will also decrease the manufacturing cost and will increase the properties of the coins. Coins will lighter with respect to present days coins due to the lower density of the metal used. Coins should consist the engraving of looms on its head and face value with map of India & Ashoka pillar on its tail because textile industry is the biggest industry of India and map of India due to the unity in diversity within the country. Suggestions for notes ……. Indian banknotes should be more colour sensitive, it means that different colour should be use in different note so that the larger part of the population, who are not literate can make difference between two notes easily. More use of textile fiber can add water insolubility to the notes. For better result water repellant should be used on the surface of notes which can make it more waterproof. Better quality of paper can increase the life spam of the banknotes. Banknotes should be bundled with polyethylene in place of paper; it can minimize the external unexpected damages. The design on the notes should be more specific and related to present days problems can make better sense because through this any message can be send to each individual of the country. The security features should be such that one illiterate can also differentiate between the fake currency or counterfeit currency and a genuine currency. The shape of banknotes should be around a golden rectangle. It will look better and will easy to handle also. Dollar size or Euro size Indian rupees banknote can bring smile on the face of imported purse-lover.
Information gathered from our Mentor, Mr. Suhail Anwar sir.
Information gathered from the faculties of all the subjects Information gathered from our course co-ordiantor, Mrs. Suruchi mam. Information gathered from various books and manuals on Indian currency Information viewed in newspapers ‘Times of India’ Information from Punjab National Bank, Green Park branch & ICICI bank, Hauz Khas branch Information gathered from seniors students of UG-TECH Information gathered from internet www.rbi.gov.in www.money.howstuffworks.com www.ancienthistory.com www.collectpapermoney www.mint.fi www.banknotes.com www.answers.com
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