To where is the printed currency of RBI distributed?
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RBI is the sole authority in INDIA responsible for printing, minting and distributing rupees.The Reserve Bank of India (RBI) owns a printing press for paper notes and a mint for coins. RBI decides based on inflation and demand for cash, that how much money has to be printed.
The printing of money is also assisted by many factors such as monetary policy and statistics on financial information.After rupees are printed and minted, the Reserve Bank of India sends them to the 18 regional offices. These offices distribute them to commercial banks, and from there they reach the public through public/private banks and ATM withdrawals. But only 18 regional offices cannot cover such a big nation like INDIA. So the solution to this problem is currency chest.
Currency chests are stocks in commercial banks around India where the RBI puts rupees for local distribution, so that circulation is not limited to the 18 cities where the RBI has regional offices. RBI maintains currency chests of its own at treasuries and branches of the banks at all important centres. The currency notes printed at the press flow to the RBI offices and from the RBI office to these currency chests before they reach the public.
The same is for coins which are minted in 4 mints then taken to 4 mint related RBI offices from where they are taken to currency chests to distribute in the market.
In short distribution of notes and coins throughout the country is done through designated bank branches, called chests. Chest is a receptacle in a commercial bank to store notes and coins on behalf of the Reserve Bank. Deposit into chest leads to credit of the commercial bank’s account and withdrawal leads to debit.
The printing of money is also assisted by many factors such as monetary policy and statistics on financial information.After rupees are printed and minted, the Reserve Bank of India sends them to the 18 regional offices. These offices distribute them to commercial banks, and from there they reach the public through public/private banks and ATM withdrawals. But only 18 regional offices cannot cover such a big nation like INDIA. So the solution to this problem is currency chest.
Currency chests are stocks in commercial banks around India where the RBI puts rupees for local distribution, so that circulation is not limited to the 18 cities where the RBI has regional offices. RBI maintains currency chests of its own at treasuries and branches of the banks at all important centres. The currency notes printed at the press flow to the RBI offices and from the RBI office to these currency chests before they reach the public.
The same is for coins which are minted in 4 mints then taken to 4 mint related RBI offices from where they are taken to currency chests to distribute in the market.
In short distribution of notes and coins throughout the country is done through designated bank branches, called chests. Chest is a receptacle in a commercial bank to store notes and coins on behalf of the Reserve Bank. Deposit into chest leads to credit of the commercial bank’s account and withdrawal leads to debit.
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