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How Does The Reserve Bank Distribute Currency To The People?

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oh-Sunil Fernandes

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One of the important roles of the Reserve Bank of India is the distribution of currency. Let us now tell you how the country’s central bank distributes currency to the masses.
The Reserve Bank of India presently Manages the currency operations through its 19 Issue Offices located at Ahmedabad, Bengaluru, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, Thiruvananthapuram and a currency chest at its Kochi office.

Furthermore, a wide network of currency chests maintained and managed by scheduled banks are part of the currency management architecture. The Issue Offices receive fresh banknotes from the currency printing presses which in turn send fresh banknote remittances to the currency chests. Direct remittances by the presses to the currency chests also happen.

The Reserve Bank offices located at Hyderabad, Kolkata, Mumbai and New Delhi (Mint Linked Offices) receive coins from the mints. These offices then send the coins to the other offices of the Reserve Bank who in turn send the same to Currency Chests and Small Coin Depots. The banknotes and rupee coins are stocked at the currency chests and small coins at the small coin depots. The bank branches receive the banknotes and coins from the Currency Chests and Small Coin Depots for further distribution among the public.

How Does The Reserve Bank Distribute Currency To The People?

Story first published: Wednesday, August 31, 2022, 9:44 [IST]

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