Legal Notes in India

Convertibility also affects a number of customs regulations that restrict the import and export of rupees. Legally, only up to ₹25,000 can be imported or exported in cash at a time, and the possession of banknotes of ₹200 and over is prohibited in Nepal. [74] [75] The conversion of foreign currency into rupees and outflows is also regulated. After the First War of Independence in 1857, the British government took direct control of India. Since 1851, gold sovereigns have been mass-produced at the Royal Mint in Sydney. In an 1864 attempt to make the British gold sovereign the “imperial coin”, the treasures of Bombay and Calcutta were ordered to receive (but not issue) gold sovereigns; Therefore, these golden rules have never left the coffers. When the British government abandoned all hope of replacing the rupee with the pound sterling in India, it realized for the same reason that it could not replace the silver dollar in the Straits settlements with the Indian rupee (as the British East India Company had demanded). Since the silver crisis of 1873, several countries have switched to a gold standard (with silver or notes circulating locally, but with a fixed gold value for export purposes), including India in the 1890s. [34] These recommendations were acceptable to both governments and were quickly translated into law. The law making gold legal was promulgated on September 15, 1899; and shortly thereafter, preparations were made for the minting of the gold rulers at the Bombay Mint. [32] This law only served to deceive the Indian people, as sovereign gold coins were never minted in India. [38] The design of the banknotes is approved by the central government on the recommendation of the Central Council of the Reserve Bank of India.

[5] Banknotes are printed at Currency Note Press in Nashik, Bank Note Press in Dewas, Bharatiya Reserve Bank Note Mudran (P) Ltd in Salboni and Mysore, and Watermark Paper Manufacturing Mill in Hoshangabad. Mahatma Gandhi series banknotes are issued by the Reserve Bank of India as legal tender. The series is so named because the front of each note features a portrait of Mahatma Gandhi. Since its introduction in 1996, this series has replaced all Lion Capital Series banknotes issued. RBI introduced the series in 1996 with €10 and €500 notes. The printing of ₹5 banknotes (which had been previously discontinued) resumed in 2009. 8. In November 2016, the Indian government announced the demonetization of the $500 and $1,000 notes[11],[12] from midnight on the same day, invalidating these notes. [13] Since 10th November 2016 a redesigned series of €500 banknotes and a new denomination of €2,000 banknotes have been in circulation. [14] [15] After the partition of India, the Pakistani rupee was created, initially with Indian coins and Indian banknotes simply stamped with “Pakistan”. Previously, the Indian rupee was an official currency of other countries, including Aden, Oman, Dubai, Kuwait, Bahrain, Qatar, the Trucial States, Kenya, Tanganyika, Uganda, Seychelles and Mauritius. Under Section 26 of the Reserve Bank of India Act, 1934, the bank is required to pay the value of the note.

This amount must be paid upon request of RBI as issuer. The bank`s obligation to pay the value of the ticket does not arise from a contract, but from legal provisions. The promissory note clause “I promise to pay the holder an amount of X” printed on banknotes is a statement that the note is legal tender for the amount X. The bank is obliged to exchange a note for coins of the same amount. [76] Since January 2012, the new “₹” mark has been included in Mahatma Gandhi series banknotes in denominations of ₹10, ₹20, 50, 100, 500 and 1,000. [64] [65] [66] [67] In January 2014, RBI announced that it would withdraw all notes printed before 2005 by March 31, 2014. The deadline was then extended to 1 January 2015. The deadline was again extended to 30 June 2016. [68] The Bhutanese ngultrum is on an equal footing with the Indian rupee; Both currencies are accepted in Bhutan. The Nepalese rupee is set at ₹0.625; The Indian rupee is accepted in Bhutan and Nepal, with the exception of the 500 and 1000 notes of the Mahatma Gandhi series and the $200, 500 and 2,000 notes of the new Mahatma Gandhi series, which are not legal tender in Bhutan and Nepal and are banned by their respective governments, although they are accepted by many retailers.

[48] On January 29, 2014, Zimbabwe added the Indian rupee as legal tender. [49] [50] After independence, new designs were introduced to replace the portrait of George VI. The government continued to issue the Re1 note, while the Reserve Bank of India (RBI) issued other denominations (including the $5,000 and $10,000 notes introduced in 1949). All pre-independence banknotes were officially cancelled with effect from 28 April 1957. [62] [63] In 1861, the Indian government introduced its first paper money: ₹10 note in 1864, ₹5 note in 1872, ₹10,000 note in 1899, ₹100 note in 1900, ₹50 note in 1905, ₹500 note in 1907 and ₹1,000 note in 1909. The ₹1 and ₹21⁄2 banknotes were introduced in 1917. The Reserve Bank of India began producing banknotes in 1938, issuing ₹2, 5, 10, 50, 100, 1,000 and 10,000 notes, while the government continued to issue 1 note but demonetized the 500 and 2 1⁄2 notes. As of 26 April 2019, banknotes currently in circulation are denominations of ₹5, ₹10, ₹20, ₹50 and ₹100 of the Mahatma Gandhi series and in denominations of ₹10, ₹20,[69] ₹50, ₹100, ₹200, ₹500 and ₹2,000 of the new Mahatma Gandhi series. On November 8, 2016, the RBI announced the issuance of new $500 and $2,000 notes in a new series following the demonetization of the old $500 and $1,000 notes.

The new $2,000 note has a magenta base color with a portrait of Mahatma Gandhi as well as the Ashoka pillar emblem on the front. The name also has a motif from the Mars Orbiter (MOM) mission on the reverse, which represents the country`s first project in interplanetary space. The new $500 note has a stone-grey base colour with an image of the Red Fort and the Indian flag on the reverse. Both banknotes also have the Swachh Bharat Abhiyan logo printed on the back. ₹200, ₹100 and ₹50 banknotes were also introduced in the new Mahatma Gandhi series, intended to replace all banknotes of the previous Mahatma Gandhi series. [18] On June 13, 2017, the RBI introduced new $50 notes, but the old ones are still legal tender. The design is similar to the current notes in the Mahatma Gandhi (New) series, except that they are accompanied by an inserted “A”. The prophecy made before the 1898 committee by Mr.