Collectors of note graphics and people interested in tracing back the history of the Indian currency system might be able to do so at the original bank notes exhibition organized by the Reserve Bank of India. RBI, Ahmedabad has organized exhibition of original bank notes issued by the central bank since 1935 as a part of its Platinum Jubilee Celebrations.

Interesting facts:

-Once upon a time in India, banks were free to issue their own bank notes, cheques and there were no or few restrictions on capital reserves too. There was free entry and exit of banks.This ‘free banking’ era ended in 1861 when the Paper Currency Act came into force, giving the government the monopoly of issuing bank notes in India.

-The Reserve Bank of India came into existence 75 years ago on April 1, 1935 to regulate the issue of bank notes and maintaining reserves with a view to securing monetary stability in India and to operate the currency and credit system of the country to its advantage.

-Currently, the Reserve Bank of India Act, 1934 has provisions to issue notes of denominations up to Rs 10,000. The government, on the advice of the Reserve Bank, can decide on various denominations of bank notes to be issued. At present, notes are issued in denominations of Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000. While as per the provisions of the Coinage Act, 1906, coins can be issued up to a denomination of Rs 1,000.

-Though originally privately-owned, the Reserve Bank of India became fully-owned by the government, post nationalization in 1949. 2009-10 was celebrated as the Platinum Jubilee year for RBI to commemorate 75 years of its ‘promise to pay’.

-With time, however, notes of smaller denominations were converted into coins as they constituted higher proportion of notes in circulation in terms of number while accounting for a lower value.