RBI supply chain
RBI supply chain
For a common person, money simply means currency and coins. This is so because in India, the payment system, which includes credit cards and electronic cash, still revolves mainly around currency and coins, especially for retail transactions.
A) Some Basics
I. Coins
Coins in India are presently being issued in denominations of 50 paise, one rupee, two rupees, five rupees and ten rupees. Coins up to 50 paise are called 'small coins' and coins of Rupee one and above are called 'Rupee Coins'. Coins in the denomination of 1 paise, 2 paise, 3 paise, 5 paise, 10 paise, 20 paise and 25 paise have been withdrawn from circulation with effect from June 30, 2011 and are, therefore, no more legal tender.
II. Currency:
Banknotes in India are currently being issued in the denomination of ` 10, ` 20, `50, ` 100 ` 200, and `2000. These notes are called banknotes as they are issued by the Reserve Bank of India (Reserve Bank). The printing of notes in the denominations of ` 1, ` 2 and ` 5 has been discontinued as these denominations have been coinised. However, such banknotes issued earlier can still be found in circulation and these banknotes continue to be legal tender.
What is the Indian currency called?
The Indian currency is called the Indian Rupee (INR) and the coins are called paise. One Rupee consists of 100 paise. The symbol of the Indian Rupee is `. The design resembles both the Devanagari letter "`" (ra) and the Latin capital letter "R", with a double horizontal line at the top.
Can banknotes and coins be issued only in these denominations?
Not necessarily. The Reserve Bank can also issue banknotes in the denominations of five thousand rupees and ten thousand rupees, or any other denomination that the Central Government may specify. However, there cannot be banknotes 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 in terms of The Coinage Act, 2011.
Demonetization of higher denomination banknotes.
` 1000 and ` 10000 banknotes, which were then in circulation were demonetized in January 1946, primarily to curb unaccounted money. The higher denomination banknotes in ` 1000, ` 5000 and ` 10000 were reintroduced in the year 1954, and these banknotes (` 1000, ` 5000 and ` 10000) were again demonetized in January 1978.
What is legal tender?
The coins issued under the authority of Section 6 of The Coinage Act, 2011, shall be legal tender in payment or on account i.e. provided that a coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in its
case: - (a) coin of any denomination not lower than one rupee shall be legal tender for any sum, (b) half rupee coin shall be legal tender for any sum not exceeding ten rupees,
Every banknote issued by Reserve Bank of India (` 2, ` 5, ` 10, ` 20, ` 50, ` 100, ` 200 and ` 2000) shall be legal tender at any place in India in payment or on account for the amount expressed therein, and shall be guaranteed by the Central Government, subject to provisions of sub-section (2) Section 26 of RBI Act, 1934.
What is the meaning of "I promise to pay" clause?
As per Section 26 of Reserve Bank of India Act, 1934, the Bank is liable to pay the value of banknote. This is payable on demand by RBI, being the issuer. The Bank's obligation to pay the value of banknote does not arise out of a contract but out of statutory provisions.
The promissory clause printed on the banknotes i.e., "I promise to pay the bearer the sum of Rupees …is a statement which means that the banknote is a legal tender for the specified amount. The obligation on the part of the Bank is to exchange a banknote with bank notes of lower value or other coins which are legal tender under the Indian Coinage Act, 2011, of an equivalent amount.
Why is One Rupee liability of the Government of India?
The One Rupee notes issued under the Currency Ordinance, 1940 are also legal tender and included in the expression Rupee coin for all the purposes of the Reserve Bank of India Act, 1934. Since the rupee coins issued by Government constitute the liabilities of the Government, one rupee is also liability of the Government of India.
B) Currency Management.
What is the role of the Reserve Bank of India in currency management?
The Reserve Bank derives its role in currency management from the Reserve Bank of India Act, 1934.The Reserve Bank manages currency in India. The Government, on the advice of the Reserve Bank, decides on various denominations of banknotes to be issued. The Reserve Bank also co-ordinates with the Government in the designing of banknotes, including the security features. The Reserve Bank estimates the quantity of banknotes that are likely to be needed denomination-wise and accordingly, places indent with the various printing presses. The aim of the Reserve Bank is to provide good quality notes to members of public. Towards this aim, the banknotes received back from circulation are examined and those fit for circulation are reissued and the others (soiled and mutilated) are destroyed so as to maintain the quality of banknotes in circulation.
What is the role of Government of India?
In terms of Section 25 of RBI Act, 1934 the design of banknotes is required to be approved by the Central Government on the recommendations of the Central Board of the Reserve Bank of India. The responsibility for coinage vests with the Government of India on the basis of the Coinage Act, 2011 as amended from time to time. The Government of India is also responsible for the designing and minting of coins in various denominations.
Who decides on the figure to be printed on a new note?
The Government of India in consultation with the Reserve Bank of India decided on the design of banknotes.
What happens to the old design notes when a new design is introduced?
Both old and new design notes usually circulate together for a while. The old design notes are then gradually withdrawn from circulation when they become unfit to be re-issued.
Are old notes issued by the Reserve Bank of India worthless?
No. The Reserve Bank of India does not withdraw the legal tender character of notes issued in the past. All RBI notes retain their face value till any specific communication from RBI to the contrary. These notes can be exchanged at any bank branch. However, the above does not apply to the higher denomination banknotes of ` 1000, ` 5000 and `10000 that were demonetized in 1978.
What was the highest denomination note ever printed?
The highest denomination note ever printed by the Reserve Bank of India was the ` 10000 note in 1938 and again in 1954. These notes were demonetized in 1946 and again in 1978.
What is the role of RBI in issue of coins?
The role of RBI is limited to distribution of coins that are supplied by Government of India. The responsibility for coinage vests with the Government of India on the basis of the Coinage Act, 2011, as amended from time to time.
Who is responsible for changing the design of coins from time to time?
The Government of India is responsible for the designing and minting of coins in various denominations.
What is currency paper made of?
Currency paper is composed of cotton and cotton rag.
Who decides on the volume and value of banknotes to be printed and on what basis?
The Reserve Bank based on the demand requirement indicates the volume and value of banknotes to be printed each year to the Government of India which get finalized after mutual consultation. The quantum of banknotes to be printed, broadly depends on the requirement for meeting the demand for banknotes, GDP growth, replacement of soiled banknotes, reserve stock requirements, etc.
Who decides on the quantity of coins to be minted?
The Government of India decides on the quantity of coins to be minted on the basis of indents received from the Reserve Bank.
How does the Reserve Bank estimate the demand for banknotes?
The Reserve Bank estimates the demand for banknotes on the basis of the growth rate of the economy, inflation rate, the replacement demand and reserve stock requirements by using statistical models/techniques.
Where are notes and coins produced?
Notes are printed at four printing presses located at Nashik, Dewas, Mysore and Salboni. Coins are minted at the four mints at Mumbai, Noida, Kolkata and Hyderabad.
How does the Reserve Bank reach the currency to people?
The Reserve Bank presently manages the currency operations through its 19 Issue offices located at Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, Thiruvananthapuram, a currency chest at Kochi and a wide net work of currency chests. These offices receive fresh banknotes from the banknote printing presses. The Issue Offices of RBI send fresh banknote remittances to the designated branches of commercial banks.
The Reserve Bank offices located at Hyderabad, Kolkata, Mumbai and New Delhi (Mint linked Offices) initially receive the coins from the mints. These offices then send them 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.
What is a currency chest?
To facilitate the distribution of banknotes and rupee coins, the Reserve Bank has authorised select branches of scheduled banks to establish currency chests. These are actually storehouses where banknotes and rupee coins are stocked on behalf of the Reserve Bank. As on December 31, 2013, there were 4209 currency chests. The currency chest branches are expected to distribute banknotes and rupee coins to other bank branches in their area of operation.
What is a small coin depot?
Some bank branches are authorised to establish Small Coin Depots to stock small coins i.e. coins below Rupee one. The Small Coin Depots also distribute small coins to other bank branches in their area of operation. As on December 31, 2013, there were 3966 small coin depots.
What happens when the banknotes and coins return from circulation?
Banknotes returned from circulation are deposited at the Issue offices of the Reserve Bank. The Reserve Bank subjects these to processing, authenticates banknotes for their genuineness, segregates them into notes fit for reissue and those which are unfit, for cancellation. The banknotes which are fit for reissue are sent back in circulation and those which are unfit for reissue are destroyed by way of shredding after completion of examination process. Coins do not come back from circulation, except those which are withdrawn.
From where can the general public obtain banknotes and coins?
Presently, banknotes and coins can be obtained in exchange at RBI offices and all branches of banks. This function is being delegated by RBI to commercial banks.
C) Soiled and Mutilated Banknotes
What are soiled, mutilated and imperfect banknotes?
(i) "soiled note:" means a note which, has become dirty due to usage and also includes a two piece note pasted together wherein both the pieces presented belong to the same note, and form the entire note.
(ii) Mutilated banknote is a banknote, of which a portion is missing or which is composed of more than two pieces.
(iii) Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated banknote.
Can soiled and mutilated banknotes be exchanged for value?
Yes. Such banknotes can be exchanged for value.
Where are soiled/mutilated banknotes accepted for exchange?
All banks are authorized to accept soiled banknotes for full value. They are expected to extend the facility of exchange of soiled notes even to non-customers. All branches of commercial banks are authorised to adjudicate mutilated banknotes and pay value for these, in terms of the Reserve Bank of India (Note Refund) Rules, 2009
How much value would one get in exchange of soiled banknotes?
Soiled banknotes are exchanged for full value.
How much value would one get in exchange of mutilated banknotes?
A mutilated banknote can be exchanged for full value if,
(i) For denominations of ` 1, ` 2, ` 5, ` 10 and ` 20, the area of the single largest undivided piece of the note presented is more than 50 percent of the area of respective denomination, rounded off to the next complete square centimeter.
(ii) For denominations of ` 50, ` 100, ` 500 and ` 1000, the area of the single largest undivided piece of the note presented is more than 65 percent of the area of respective denomination, rounded off to the next complete square centimeter.
Banknotes in denominations of ` 1, ` 2, ` 5, ` 10 and ` 20, cannot be exchanged for half value.
A mutilated banknote in denominations of ` 50, ` 100, ` 200 or ` 2000, can be exchanged for half value if,
The undivided area of the single largest piece of the note presented is equal to or more than 40 percent and less than or equal to 65 percent of the area of respective denomination, rounded off to the next complete square centimeter.
How much value would one get in exchange of imperfect banknotes?
The value of an imperfect note may be paid for full value / half value under rules as specified for mutilated notes if,
(i) the matter, which is printed on the note has not become totally illegible, and
(ii) it can be established that it is a genuine note.
What types of banknotes are not eligible for payment under the Note Refund Rules?
The following banknotes are not payable under the Reserve Bank of India (Note Refund) Rules 2009.
A banknote for which:
the area of single largest undivided piece of note presented is less than or equal to 50% of area of the note for denominations of ` 1, ` 2, ` 5, ` 10 and ` 20.
the area of the single largest undivided piece of the note is less than 40 percent for denominations of ` 50, ` 100, ` 200 or ` 2000.
A banknote which:
cannot be identified with certainty as a genuine note for which the Bank is liable under the Act,
has been made imperfect or mutilated, thereby causing the note to appear to be of a higher denomination, or has been deliberately cut, torn, defaced, altered or dealt with in any other manner, not necessarily by the claimants, enabling the use of the same for making of a false claim under these rules or otherwise to defraud the Bank or the public,
carries any extrinsic words or visible representations intended to convey or capable of conveying any message of a political or religious character or furthering the interest of any person or entity,
has been imported into India by the claimant from any place outside India in contravention of the provision of any law.
Is the serial number used when assessing the value of a damaged banknotes
The presence or absence of a serial number or other specific feature is not a determining factor when assessing damaged banknotes for value.
What if a banknote is found to be non-payable?
Non-payable banknotes are retained by the receiving banks and sent to the Reserve Bank where they are destroyed.
Can Indian banknotes be obtained with specific serial numbers?
Issuing banknotes with specific numbers may not be possible.
How many languages appear in the language panel of Indian banknotes?
There are fifteen languages appearing in the language panel of banknotes in addition to Hindi prominently displayed in the centre of the note and English on the reverse of the banknote.
D) Banknotes since Independence.
i. Ashoka Pillar Banknotes:
The first banknote issued by independent India was the one rupee note issued in 1949. While retaining the same designs the new banknotes were issued with the symbol of Lion Capital of Ashoka Pillar at Sarnath in the watermark window in place of the portrait of King George.
The name of the issuer, the denomination and the guarantee clause were printed in Hindi on the new banknotes from the year 1951. The banknotes in the denomination of `1000, `5000 and `10000 were issued in the year 1954. Banknotes in Ashoka Pillar watermark Series, in `10 denomination were issued between 1967 and 1992, ` 20 denomination in 1972 and 1975, ` 50 in 1975 and 1981, and `100 between 1967-1979. The banknotes issued during the above period, contained the symbols representing science and technology, progress, orientation to Indian Art forms. In the year 1980, the legend "Satyameva Jayate", i.e., truth alone shall prevail was incorporated under the national emblem for the first time. In October 1987, `500, banknote was introduced in October 1987 with the portrait of Mahatma Gandhi and the Ashoka Pillar watermark.
ii. Mahatma Gandhi (MG) Series 1996
The banknotes in MG Series – 1996 were issued in the denominations of ` 5, (introduced in November 2001) ` 10 (June 1996), ` 20 (August 2001), ` 50 (March 1997), `100 (June 1996), ` 500 (October 1997) and `1000 (November 2000). All the banknotes of this series bear the portrait of Mahatma Gandhi on the obverse (front) side, in place of symbol of Lion Capital of Ashoka Pillar, which has also been retained and shifted to the left side next to the watermark window. This means that these banknotes contain Mahatma Gandhi watermark as well as Mahatma Gandhi's portrait.
iii MG series – 2005 banknotes
MG series 2005 banknotes are issued in the denomination of `10, `20, `50, `100, `500 and `1000 and contain some additional / new security features as compared to the 1996 MG series. The `50 and `100 banknotes were issued in August 2005, followed by `500 and `1000 denominations in October 2005 and `10 and `20 in April 2006 and August 2006, respectively.
The security features in MG Series 2005 banknotes are as under:
Security Thread: The silver coloured machine-readable security threadin ` 10, ` 20 and ` 50 denomination banknotes is windowed on front side and fully embedded on reverse side. The thread fluoresces in yellow on both sides under ultraviolet light. The thread appears as a continuous line from behind when held up against light. `100, `500 and `1000 denomination banknotes have machine-readable windowed security thread with colour shift from green to blue when viewed from different angles. It fluoresces in yellow on the reverse and the text will fluoresce on the obverse under ultraviolet light. Other than on `1000 banknotes, the security thread contains the words 'Bharat' in the Devanagari script and 'RBI' appearing alternately. The security thread of the ` 1000 banknote contains the inscription 'Bharat' in the Devanagari script, '1000' and 'RBI'.
Intaglio Printing: The portrait of Mahatma Gandhi, Reserve Bank seal, Guarantee and promise clause, Ashoka Pillar emblem, RBI’s Governor's signature and the identification mark for the visually impaired persons are printed in improved intaglio.
See through register: On the left side of the note next to the watermark window, half the numeral of each denomination (10, 20, 50, 100, 500 and 1000) is printed on the obverse (front) and half on the reverse. The accurate back to back registration makes the numeral appear as one when viewed against light.
Water Mark and electrotype watermark: The banknotes contain the portrait of Mahatma Gandhi in the watermark window with a light and shade effect and multi-directional lines. An electrotype mark showing the denominational numeral 10, 20, 50, 100, 500 and 1000 respectively in each denomination banknote also appear in the watermark widow and these can be viewed better when the banknote is held against light.
Optically Variable Ink (OVI): The numeral 500 & 1000 on the ` 500 and ` 1000 banknotes are printed in Optically Variable Ink viz., a colour-shifting ink. The colour of these numerals appears green when the banknotes are held flat but would change to blue when the banknotes are held at an angle.
Fluorescence: The number panels of the banknotes are printed in fluorescent ink. The banknotes also have dual coloured optical fibres. Both can be seen when the banknotes are exposed to ultra-violet lamp.
Latent Image: In the banknotes of ` 20 and above, the vertical band next to the (right side) Mahatma Gandhi’s portrait contains a latent image, showing the denominational value 20, 50, 100, 500 or 1000 as the case may be. The value can be seen only when the banknote is held horizontally and light allowed to fall on it at 45°; otherwise this feature appears only as a vertical band.
Micro letterings: This feature appears between the vertical band and Mahatma Gandhi portrait. It contains the word ‘RBI’ in ` 10. Notes of ` 20 and above also contain the denominational value of the banknotes. This feature can be seen better under a magnifying glass.
How can one distinguish the MG series-2005 banknotes?
In addition to the security features listed above, the MG series -2005 banknotes have the year of printing on the reverse of the banknotes which is not present in the pre-2005 series.
What is the need for printing different series of banknotes?
Central banks the world over change the design of their banknotes and introduce new security features primarily to make counterfeiting difficult and to stay ahead of counterfeiters. India also follows the same policy.
E) Current Issues
Why are ` 1, ` 2, ` 5 banknotes not being printed?
Even though volume-wise, the share of such small denomination banknotes in the total banknotes in circulation was high, in value terms they constituted a very small percentage with average life of less than one year. The cost of printing and servicing these banknotes being not commensurate with their life, printing of these banknotes was discontinued and these denominations were coinised. However, ` 5 banknotes were re-introduced in 2001 to bridge the gap between demand and supply of coins in this denomination. The printing of ` 5 banknotes has been discontinued from the year 2005.
Has Reserve Bank of India considered producing a plastic banknote?
The Reserve Bank, in consultation with Government of India, has decided to introduce one billion pieces of ` 10 banknotes on plastic substrate on trial basis.
What is a "star series" banknote?
Fresh banknotes issued by Reserve Bank of India till August 2006 were serially numbered. Each of these banknote bears a distinctive serial number along with a prefix consisting of numerals and letter/s. The banknotes are issued in packets containing 100 pieces.
The Bank has also adopted the "STAR series" numbering system for replacement of defectively printed banknotes. The Star series banknotes are exactly similar to the existing Mahatma Gandhi Series banknotes, but have an additional character viz., a *(star) in the number panel in the space between the prefix and the number as indicated below:
What is non-sequential numbering?
With a view to enhancing operational efficiency and cost effectiveness in banknote printing, non-sequential numbering was introduced in 2011 consistent with international best practices. Packets of banknotes in non-sequential number will have 100 notes which are not sequentially numbered.
What is on a banknote to help visually challenged people identify the different denominations?
Each denomination is a different size; the greater the value the larger the note. So a `1000 note is larger than a `10 note and so on. There is an identification mark on the left hand side of each note on the front side which is in raised print (intaglio) and has different shapes for different denominations for eg. Diamond for `1000, circle for ` 500, triangle for `100, square for `50, rectangle for `20 and none for `10. Further, the denomination numerals are prominently displayed in the central area of the notes in raised print.
F) Counterfeits / Forgeries
What is a forged note?
A suspected forged note, counterfeit note or fake note is any note which does not possess the characteristics of genuine Indian currency notes.
How to check whether a note is genuine or not?
A forged note can be identified on the basis of the features which are present in a genuine Indian currency note. These features are easily identifiable by seeing, touching and tilting the note. It is advisable not to rely on just one security feature as no counterfeit note can normally be expected to successfully copy all of the security features included in notes. To read about how to check banknotes see the (link) http://www.rbi.org.in/scripts/ic_banknotes.aspx
What are the legal provisions relating to printing and circulation of forged banknotes?
Counterfeiting banknotes / using as genuine, forged or counterfeit banknotes / possession of forged or counterfeit banknote / making or possessing instruments or materials for forging or counterfeiting banknotes making or using documents resembling banknotes are offences under Sections 489A to 489E of the Indian Penal Code and are punishable in the Courts of Law by fine or imprisonment ranging from seven years to life imprisonment or both, depending on the offence.
Does possession of a forged note attract the punishment of fine or imprisonment?
Mere possession of a forged note does not attract punishment. Possession of a forged note knowing to be such and intending to use the same as genuine or that it may be used as genuine, is punishable under Section 489C of Indian Penal Code, 1860.
What are the actions taken by the Reserve Bank of India to train general public to distinguish genuine banknotes from forged notes?
The Reserve Bank of India has been organizing training sessions on the authentication of banknotes security features for people handling significant amounts of cash like banks/consumer forums/merchant associations/educational institutions/police professionals. Apart from the training sessions, information on security features of banknotes is also available on the Bank’s website.
Why has RBI decided to withdraw pre-2005 series banknotes?
Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005. It is a standard international practice to withdraw old series notes. The RBI has already been withdrawing these banknotes in a routine manner through banks. It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant enough to impact the general public in a large way and the members of public may exchange the pre-2005 series banknotes at bank branches at their convenience.
G) Clean Note Policy:
Reserve Bank of India has been continuously making efforts to make good quality banknotes available to the members of public. To help RBI and banking system, the members of public are requested to ensure the following:
Not to staple the banknotes
Not to write / put rubber stamp or any other mark on the banknotes
Not to use banknotes for making garlands/toys, decorating pandals and places of worship or for showering on personalities in social events, etc.
48 comments:
RBI supply chain
Facilities: Printing places, issue offices, currency chests,branches, ATM, websites, And Apps.
Megha Ingale
2GI18MBA24
1:overall monetary conditions, reflecting the extent of mismatch between demand and supply of overall monetary resources. In the context of financial markets, it is rather narrowly defined as the ease of undertaking transactions in financial assets at narrow bid-ask spreads.
For a central bank, the concept of liquidity is somewhat different. Entrusted with the responsibility of the regulation of the monetary system, liquidity for central banks refers to the monetary base (currency and reserves of the banking system), of which it is the solitary supplier. The supply of monetary base by the central bank depends on (i) the public's demand for currency, as determined by the size of monetary transactions and the opportunity cost of holding money and, (ii) the banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
2:The present version is a simplified structural model of short-term liquidity assessment/forecasting based on information on financial transactions conducted by the Reserve Bank of India with the general government and other financial market entities.iii Ever since market based reforms were initiated in India, financial markets have become closely interlinked and their operations relatively more complex. The easing of erstwhile regulatory controls and the dismantling of administered price mechanisms, the emergence of new products and services and arbitrage opportunities coupled with progression in the depth, volumes and liquidity of markets have resulted in substantial increase in market turnovers and faster movements of investment funds across markets. More notable is government securities market, in which average monthly turnover increased phenomenally from about Rs. 2,700 crore in 1995 to Rs 84,000 crore in 2001.
3:The core central banking function of note issue and management of currency in circulation is performed by the Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation. This is done through its 18 regional Issue Offices/sub-offices and a wide network of currency chests, repositories and small coin depots spread across the country. In 2002-03, the sub-offices of the Issue Department at Bhopal and Chandigarh and the currency chest at Jammu were converted into full-fledged Issue Offices. Sixty-four additional currency chests and 46 additional small coin depots were opened during the year.
4:The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants.
The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more home loan takers," he said.
The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders.
5: Payments in the online space are facilitated by a number of intermediaries like the payment gateways and payment aggregators. These intermediaries act as the bridge between the providers of goods / services (merchants) and those that require them (customers). For a successful online experience, the role of such intermediaries is crucial.
*The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces.
Information technology: CBS, RTGs, NEFT, ATM Networking, inter bank transactions, interface with income tax and government regulators
Good. Payment gateway is a good answer
Inventory
Cash inventory at branch, and chest.
Cash inventory at issue office
Cash inventory at printing press
Inventory of soiled notes at branch, chest and issue office.
Krupa Deshpande
2GI18MBA20
RBI SUPPLY CHAIN
1.For a central bank, the concept of liquidity is somewhat different. Entrusted with the responsibility of the regulation of the monetary system, liquidity for central banks refers to the monetary base (currency and reserves of the banking system), of which it is the solitary supplier. The supply of monetary base by the central bank depends on
1. The public's demand for currency, as determined by the size of monetary transactions and the opportunity cost of holding money.
2. The banking system need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
2. The present version is a simplified structural model of short-term liquidity assessment/forecasting based on information on financial transactions conducted by the Reserve Bank of India with the general government and other financial market entities.iii Ever since market based reforms were initiated in India, financial markets have become closely interlinked and their operations relatively more complex. The easing of erstwhile regulatory controls and the dismantling of administered price mechanisms, the emergence of new products and services and arbitrage opportunities coupled with progression in the depth, volumes and liquidity of markets have resulted in substantial increase in market turnovers and faster movements of investment funds across markets. More notable is government securities market, in which average monthly turnover increased phenomenally from about Rs. 2,700 crore in 1995 to Rs 84,000 crore in 2001.
3. The core central banking function of note issue and management of currency in circulation is performed by the Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation. This is done through its 18 regional Issue Offices/sub-offices and a wide network of currency chests, repositories and small coin depots spread across the country. In 2002-03, the sub-offices of the Issue Department at Bhopal and Chandigarh and the currency chest at Jammu were converted into full-fledged Issue Offices. Sixty-four additional currency chests and 46 additional small coin depots were opened during the year.
4.The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants.
The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more home loan takers," he said.
The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders.
5.The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces.
Reverse logistics information is not answered
Transportation
Cash and coin transportation.
Soiled note transportation.
ATM cash replenishment.
Inter branch and bank cash transportation.
Supply of cotton, printing ink and security thread
Yojan S
USN 2GI18MBA60
1. Demand and supply of RBI
RBI forecasts its demand based on the circulation of notes and also by considering the gross domestic condition of the country
In case of supply, the printing centres forward the currency to the issue offices who further distributes currency to the various currency chest ( are designated banks by the Rbi who can hold the currency from the issue offices)
2. Forecasting by RBI
Firstly RBI does forecasting depending upon the circulation of currency in the country.
The gross domestic condition of the country is also taken in consideration
Our country has 4 facilities where the notes and coins are are printed or manufactured
The Cotton that is used for manufacturing the notes is ida imported from New Zealand or taken from Indian manufacturers
3. Circulation of currency
The currency is printed in 4 printing centres in the country and the coins are minted in another 4 centres
Then the printed currency is sent to tge issue offices and these offices distribute the currency to the chest, not all banks can be the chest only a few designated banks act as chest for supply. The chest also has limit for giving currency
There exist a third party who deals with filling and refilling of currency in ATMs
4. Reverse logistics of RBI
The currency that comes back to the banks or chest, the genuineness of the currency is tested for providing counter fit only then the Rbi will reissue the currency
The designated banks appoint a party for re filling the currency
5. Intermediaries
1. Printing centres
2. Issue offices
3. Chest banks
4. Refilling parties ex :CMS
5. Other designated banks
Utkarsha Desai
2GI18MBA53
1. The supply is done by the central bank on the basis of the people's demand & it ensures that bank the bank functions are functioned well.
2. The forecasting model makes use of high frequency data and explores the financial markets with monetary policy instruments and aims at short-term liquidity management operations of the Reserve Bank.
3. The reserve Bank manages the currency operations from 19 issue offices. These offices receive fresh banknotes from the banknotes printing presses. These offices then send them to other offices of the reserve Bank.
4. The currency that comes back to the chest, they are tested for providing counter fit and then the RBI will reissue the currency.
5. Intermidiaries
* Chest banks
*Issue offices
*Printing centres.
Shweta uttam
2GI18MBA49
1:overall monetary conditions, reflecting the extent of mismatch between demand and supply of overall monetary resources.
Entrusted with the responsibility of the regulation of the monetary system, liquidity for central banks refers to the monetary base (currency and reserves of the banking system), of which it is the solitary supplier. The supply of monetary base by the central bank depends on (i) the public's demand for currency, (ii) the banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
2:The present version is a simplified structural model of short-term liquidity assessment/forecasting based on information on financial transactions conducted by the Reserve Bank of India with the general government and other financial market entities.iii Ever since market based reforms were initiated in India, financial markets have become closely interlinked and their operations relatively more complex. The easing of erstwhile regulatory controls and the dismantling of administered price mechanisms, the emergence of new products and services and arbitrage opportunities coupled with progression in the depth, volumes and liquidity of markets have resulted in substantial increase in market turnovers and faster movements of investment funds across markets. More notable is government securities market, in which average monthly turnover increased phenomenally from about Rs. 2,700 crore in 1995 to Rs 84,000 crore in 2001.
3:The core central banking function of note issue and management of currency in circulation is performed by the Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation. This is done through its 18 regional Issue Offices/sub-offices and a wide network of currency chests, repositories and small coin depots spread across the country. In 2002-03, the sub-offices of the Issue Department at Bhopal and Chandigarh and the currency chest at Jammu were converted into full-fledged Issue Offices. Sixty-four additional currency chests and 46 additional small coin depots were opened during the year.
4:The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly
The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more home loan takers
The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders.
5: Payments in the online space are facilitated by a number of intermediaries like the payment gateways and payment aggregators. These intermediaries act as the bridge between the providers of goods / services (merchants) and those that require them (customers).
*The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces.
Nice
Pooja G
2GI18MBA34
1.Demand and supply in RBI
The Reserve Bank estimates the demand for banknotes on the basis of the growth rate of the economy, inflation rate, the replacement demand and reserve stock requirements by using statistical models/techniques. Notes are printed at four printing presses located at Nashik, Dewas, Mysore and Salboni. Coins are minted at the four mints at Mumbai, Noida, Kolkata and Hyderabad.
2.Forecasting by RBI
The Reserve Bank based on the demand requirement indicates the volume and value of banknotes to be printed each year to the Government of India which get finalized after mutual consultation. The quantum of banknotes to be printed, broadly depends on the requirement for meeting the demand for banknotes, GDP growth, replacement of soiled banknotes, reserve stock requirements, etc.Notes are printed at four printing presses located at Nashik, Dewas, Mysore and Salboni. Coins are minted at the four mints at Mumbai, Noida, Kolkata and Hyderabad.
3.currency circulation of RBI
Notes are printed at four printing presses located at Nashik, Dewas, Mysore and Salboni. Coins are minted at the four mints at Mumbai, Noida, Kolkata and Hyderabad.The Reserve Bank presently manages the currency operations through its 19 Issue offices located at various states ,a currency chest at Kochi and a wide net work of currency chests. These offices receive fresh banknotes from the banknote printing presses. The Issue Offices of RBI send fresh banknote remittances to the designated branches of commercial banks.
The Reserve Bank offices located at Hyderabad, Kolkata, Mumbai and New Delhi (Mint linked Offices) initially receive the coins from the mints. These offices then send them 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.
4.Intermediary in RBI
Printing officer
Issue officer
Currency chest
RBI
Commercial bank
5.Reverse logistics means the money which is coming back to branch or currency chest or issue officer after the check for genuiness of currency to avoid the counter fit .Currency which is not fit is returned to RBI.
Rohan J Shanbhag
USN - 2GI18MBA42
1. Demand and supply of RBI - RBI figures its interest dependent on the course of notes and furthermore by thinking about the gross local state of the nation If there should arise an occurrence of supply, the printing communities forward the money to the issue workplaces who further circulates money to the different cash chest.
2. Forecasting by RBI - Right off the bat RBI does estimating contingent on the flow of cash in the nation. The gross local state of the nation is likewise taken in thought
Our nation has 4 offices where the notes and coins are printed or produced
The Cotton that is utilized for assembling the notes is ida imported from New Zealand or taken from Indian makers.
3. Circulation of currency - The money is imprinted in 4 printing habitats in the nation and the coins are stamped in another 4 communities At that point the printed money is sent to tge issue workplaces and these workplaces appropriate the cash to the chest, not all banks can be the chest just a couple assigned banks go about as chest for supply. The chest additionally has limit for giving cash There exist an outsider who manages filling and topping off of cash in ATMs.
4. Logistics of RBI - The cash that returns to the banks or chest, the validity of the money is tried for giving counter fit at exactly that point the Rbi will reissue the money
The assigned banks delegate a gathering for re filling the money.
5. Intermediaries -
1. Printing centers
2. Issue offices
3. Chest banks
4. Other designated banks
Monika Patil
2GI18MBA25
1. Demand and supply of RBI
Money plays a vital role in the economy. The pervasive nature of money with its potentiality of great virtue underlines the importance of controlling it's supply and influencing the demand for it.
2. Forecasting of RBI
RBI forecasts on the circulation of the money. It also consider the inflation and deflection depending upon the situation, it will be easy to forecast the future.
It mainly depends on how money is circulated in the market.It maintain low and sustainable inflation with stable growth.
3. Currency circulation
Currency first printed in four different places (notes: Nasik, Devas, Mysore, Salboni & coins: Mumbai, Noida, Calcutta, Hyderabad). From the printing places it is been circulated to 19 offices of RBI. From there it is supplied to the chests.
Chests will supply the money to the banch branches. Currency chest is being managed by RBI. Chest also deposit the extra money from the bank branches. If any bank does not have any chests near by they need to open the suspens account to take the money , once money is drawn again the account is deleted.
4. Reverse Logistics of RBI
The is been checked when it is coming back from chests, issue office for its genuineness.
If the notes are genuine they will reissue the currency, incase of counter fit notes they will send back to Reserve Bank of India. Even incase of printing mistakes they need to send the money back to RBI.
5 Intermediary in the RBI supply chain.
The money is first transfer to chest and later to bank branches. There are designated banks which are allowed to refill the money in the ATMs Bank branches. The third party agencies like CMS will fill the amount. Many bank does not keep extra currency with them they immediately deposit with the chest as they need to pay intrest to the RBI.
Deepa Kanbargi
USN:2GI18MBA11
1.The Reserve Bank based on the demand requirement indicates the volume and value of banknotes to be printed each year to the Government of India which get finalized after mutual consultation. The quantum of banknotes to be printed, broadly depends on the requirement for meeting the demand for banknotes, GDP growth, replacement of soiled banknotes, reserve stock requirements, etc.
The Reserve Bank estimates the demand for banknotes on the basis of the growth rate of the economy, inflation rate, the replacement demand and reserve stock requirements by using statistical models/techniques.
2. Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005. It is a standard international practice to withdraw old series notes. The RBI has already been withdrawing these banknotes in a routine manner through banks. It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant enough to impact the general public in a large way and the members of public may exchange the pre-2005 series banknotes at bank branches at their convenience.
3. The Reserve Bank presently manages the currency operations through its 19 Issue offices located at Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar, Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna, Thiruvananthapuram, a currency chest at Kochi and a wide net work of currency chests. These offices receive fresh banknotes from the banknote printing presses. The Issue Offices of RBI send fresh banknote remittances to the designated branches of commercial banks.
The Reserve Bank offices located at Hyderabad, Kolkata, Mumbai and New Delhi (Mint linked Offices) initially receive the coins from the mints. These offices then send them 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.
4. Banknotes returned from circulation are deposited at the Issue offices of the Reserve Bank. The Reserve Bank subjects these to processing, authenticates banknotes for their genuineness, segregates them into notes fit for reissue and those which are unfit, for cancellation. The banknotes which are fit for reissue are sent back in circulation and those which are unfit for reissue are destroyed by way of shredding after completion of examination process. Coins do not come back from circulation, except those which are withdrawn.
5) The intermediaries are
Printing officer
Issue officer
Currency chest
RBI
Commercial bank
Good
Sonali sheth
2GI18MBA50
1:In monetary control system demand and supply played very important role in RBI supply chain,which performs it's operation in systematic manner.The supply of monetary base by the central bank depends on (i) the public's demand for currency, as determined by the size of monetary transactions and the opportunity cost of holding money and, (ii) the banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
2. Maintaining low and stable inflation with sustainable growth is the prime objective of any monetary authority. To achieve the prime goal, reliable forecast of macroeconomic variables play an important role. .
3:The Currency Department in RBI attends to the core statutory function of note and coin issue and currency management. This involves forecasting the demand for fresh notes and coins, placing the indent with four printing presses and mints, receiving supplies against those indents and distributing them through the 18 offices of the Bank, a wide network of currency chests, repositories and small coin depots.
4:The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants.
5: Intermediaries would include all entities that collect monies received from customers for payment to merchants using any electronic/online payment mode, for goods and services availed by them and, subsequently, facilitate the transfer of these monies to the merchants in final settlement of the obligations of the paying customers.
Vijayta kale
2GI18MBA57
1. RBI forescasts it’s demand and based on that the procurement and minting is done and the notes are supplied
2. Forecasting in RBI
Forecasting is done through the circulation and good quality of notes and soiled coins also GDP is taken into consideration before printing notes.
3. Currency circulation:
First the procurement decision is taken: water mark and Florescent ink is being procured and security threat is done. Then procuring the notes is done.
Printing of notes is done in facilities
Printing officers will send notes to 19 issue offices of rbi
And it’s circulated to currency chest.
4. Reverse logistics:
Money which comes back to bank is checked for genuineness and if notes are genuine they are reissued.
Unfit notes are send to rbi for shredding
5. Intermediataries in supply chain:
Issue offices
Chest banks
Printing centers.
Akshata Shiroshi
2GI18MBA06
1) demand and supply in RBI-
*The volume and value of banknotes to be printed every year.
* The quantums of bank notes to be printed depends on the requirement for meeting the demand for banknotes,GDP growth and reserve stock requirements.
* It estimate the demand on the basis of the growth rate of economy, inflation rate by using the statistical techniques.
SUPPLY-
RBI managed it's Currency operation through 19 issue offices located in india. A currency chest at kochi and wide network of currency chests.these offices receive fresh bank notes from the banknote printing process.
2) Forecasting by RBI -
The banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
3) Currency circulation by RBI -
Bank notes that returns from circulation are deposited at the issue offices of RBI.the RBI subjects to process, authentication of banknotes and segregates them into notes that are fit for reissue.
4)Slowing economic expansion and a widening shadow banking crisis have led to calls for more liquidity, leading to some traders speculating that the RBI will move to a reverse repo mode, pulling inter-bank rates lower.The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
5) The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces.
Abhish kamat
2GI18MBA01
1. demand and supply of RBI
The forecasting of the demand for the currency is based on the circulation of the notes and gross domestic profit of the country
The printing centres print the notes and coins are minted which are then transferred to the various currency chests from where the currency is supplied to each and every Bank
2 forecasting by RBI
The forecasting done by RBI are as follows to know the demand of currencies circulation of currency is taken and also the gross domestic profit of the country at a particular period
Next forecasting is on the raw materials required for printing notes Such as cotton required for printing, security thread etc
3 circulation of currency
Government of India has authorised four centres for printing of notes and four centres for minting of coins then the currencies and coins are transfered to different chest all over the country from the chest the third party who is given the task to supply the currency to all other banks in a given region
4 reverse logistics of reserve Bank of India
Reverse logistics comes only in two cases if the currency is not genuine or the currencies. The genuineness of the currencies are checked in the chest and if they do not pass a particular benchmark they are being returned to RBI
5 different intermediaries of RBI
1 printing center
2 issue office
3 chest bank
4 third party security ( refilling parties)
5 other banks
Suchita Koujalagi
Usn 2GI18MBA51
1) The supply and demand in RBI supply chain are
Supply:
For RBI to print notes and mint coins they needs raw materials like cotton, intalio printing, ferric stainless steel etc
For the central bank the main duty is to control money supply to all other banks in India Curreny chest are allocated which help in smooth flow of money
Demand : All banks cant keep excess money with them , everyday they must deposit excess to the chest if falling short then can withdraw also from the chest
2) Forecasting by RBI:
RBI forecasting depends on countries GDP, inflation, deflation general market conditions
The forecasting also depends on the frequency of circulation and need by other banks.
3) How currency circulation conducted:
The currency is curculated to the currency chest and from their the banks can deposit extra or withdraw if needy.
Branches of same bank or combined can have currency chest as SBI use 3rd party to fill its atm
Pooling helps save cost as well as Time
4) Reverse logistics:
The currency which is circulating comes back to bank through transactions
The old notes or torn notes are also collected and replaced
Reverse logistics helps to know the circulation of money in market
5) Intermediaries in supply chain:
* Raw materials(cotton, )
* Intalio printing
*3rd party like CMS
*All Banks
*Currency chest
Nikhil shivapujimath
2GI18MBA30
1) For a central bank, the concept of liquidity is somewhat different. Entrusted with the responsibility of the regulation of the monetary system, liquidity for central banks refers to the monetary base (currency and reserves of the banking system), of which it is the solitary supplier. The supply of monetary base by the central bank depends on (i) the public's demand for currency, as determined by the size of monetary transactions and the opportunity cost of holding money and, (ii) the banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
2) The present version is a simplified structural model of short-term liquidity assessment/forecasting based on information on financial transactions conducted by the Reserve Bank of India with the general government and other financial market entities.iii Ever since market based reforms were initiated in India, financial markets have become closely interlinked and their operations relatively more complex. The easing of erstwhile regulatory controls and the dismantling of administered price mechanisms, the emergence of new products and services and arbitrage opportunities coupled with progression in the depth, volumes and liquidity of markets have resulted in substantial increase in market turnovers and faster movements of investment funds across markets. More notable is government securities market, in which average monthly turnover increased phenomenally from about Rs. 2,700 crore in 1995 to Rs 84,000 crore in 2001.
3) The core central banking function of note issue and management of currency in circulation is performed by the Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation. This is done through its 18 regional Issue Offices/sub-offices and a wide network of currency chests, repositories and small coin depots spread across the country. In 2002-03, the sub-offices of the Issue Department at Bhopal and Chandigarh and the currency chest at Jammu were converted into full-fledged Issue Offices. Sixty-four additional currency chests and 46 additional small coin depots were opened during the year.
4) The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants.
5) The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces.
Siddeshwar M
2GI18MBA47
1. Demand and supply of RBI
Money plays a vital role in the economy. The pervasive nature of money with its potentiality of great virtue underlines the importance of controlling it's supply and influencing the demand for it.
2. Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005. It is a standard international practice to withdraw old series notes. The RBI has already been withdrawing these banknotes in a routine manner through banks. It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant enough to impact the general public in a large way and the members of public may exchange the pre-2005 series banknotes at bank branches at their convenience.
3. The core central banking function of note issue and management of currency in circulation is performed by the Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation. This is done through its 18 regional Issue Offices/sub-offices and a wide network of currency chests, repositories and small coin depots spread across the country. In 2002-03, the sub-offices of the Issue Department at Bhopal and Chandigarh and the currency chest at Jammu were converted into full-fledged Issue Offices. Sixty-four additional currency chests and 46 additional small coin depots were opened during the year.
4.The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.RBI will be in quick transmission of these liquidity tools down the line to uplift the appetite among the India Inc to notch up the economic revival.
5.The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces.
AISHWARYA TADASAD
USN 2GI18MBA02
1.overall monetary conditions, reflecting the extent of mismatch between demand and supply of overall monetary resources. In the context of financial markets, it is rather narrowly defined as the ease of undertaking transactions in financial assets at narrow bid-ask spreads.
For a central bank, the concept of liquidity is somewhat different. Entrusted with the responsibility of the regulation of the monetary system, liquidity for central banks refers to the monetary base (currency and reserves of the banking system), of which it is the solitary supplier. The supply of monetary base by the central bank depends on (i) the public's demand for currency, as determined by the size of monetary transactions and the opportunity cost of holding money and, (ii) the banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
2.The present version is a simplified structural model of short-term liquidity assessment/forecasting based on information on financial transactions conducted by the Reserve Bank of India with the general government and other financial market entities.Ever since market based reforms were initiated in India, financial markets have become closely interlinked and their operations relatively more complex. The easing of erstwhile regulatory controls and the dismantling of administered price mechanisms, the emergence of new products and services and arbitrage opportunities coupled with progression in the depth, volumes and liquidity of markets have resulted in substantial increase in market turnovers and faster movements of investment funds across markets. More notable is government securities market, in which average monthly turnover increased phenomenally from about Rs. 2,700 crore in 1995 to Rs 84,000 crore in 2001.
3.The core central banking function of note issue and management of currency in circulation is performed by the Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation. This is done through its 18 regional Issue Offices/sub-offices and a wide network of currency chests, repositories and small coin depots spread across the country. In 2002-03, the sub-offices of the Issue Department at Bhopal and Chandigarh and the currency chest at Jammu were converted into full-fledged Issue Offices. Sixty-four additional currency chests and 46 additional small coin depots were opened during the year.
The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants.
The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more home loan takers," he said.
The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders.
4.Reverse logistics is for all operations related to the reuse of products and materials. It is "the process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal. In the case of reverse logistics, the resource goes at least one step back in the supply chain.
5The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces.
Nitin Gahlot
2GI18MBA31
1) RBI forecasts its demand on the calculation of the circulation of notes in the past and using current data from the GDP of the country, minimum reserve system, solid and mutilated notes. The projected GDP figure is available from Govt, CMIE, and RBIs own Research Wing. In India, a 5% extra will be added to meet the emergency.
2) RBI does forecasting based on the circulation of currency in the country and the data provided by the research wing of RBI.The above factors are taken into consideration while evaluating forecasting such as GDP, minimum reserve system, etc.
3) The Indian rupee (notes) are printed in Nasik(Maharastra), Dewas(Madhya Pradesh), Massour (Karnataka) and Salboni (West Bengal). And Coins are minted at the four India Government Mints at Mumbai, Alipore(Kolkata), Saifabad(Hyderabad), Cherlapally (Hyderabad) and NOIDA (UP). Thes printed notes and minted money are sent to the issuing office and there on to the designated chest. The banks collect the money from these chests. And in many case such as SBI branch, railway road – Belgaum both act as a branch and chest depository. CMS takes care of refilling into the ATMs.
4) For reverse logistics, the currency that comes back to the banks or the chest goes for checking of the genuineness of the currency or for any misprint or any ink-related issue is tested only then the RBI will reissue the currency.
5) Intermediaries are as follow:
1. Printing centers
2. Issue offices
3. Chest banks
4. Refilling parties ex:CMS
5. Other designated banks
Chaitrali Shahapurkar
2GI18MBA09
1) Demand and supply of RBI:
The Reserve Bank estimates the demand for banknotes on the basis of the growth rate of the economy, inflation rate, the replacement demand and reserve stock requirements by using statistical techniques
RBI forecasts its demand based on the circulation of notes and also by considering the gross domestic condition of the country
In case of supply, the printing centres forward the currency to the issue offices who further distributes currency to the various currency chest.
2). Forecasting by RBI
Forecasting is done through circulation of good quality of notes and soiled coins
Firstly RBI does forecasting depending upon the circulation of currency in the country.
The gross domestic condition of the country is also taken in consideration
Our country has 4 facilities where the notes and coins are are printed or manufactured
The Cotton that is used for manufacturing the notes is ida imported from New Zealand or taken from Indian manufacturers
3).Circulation of currency
Fluorescent ink is produced in security thread is done. The currency is printed in 4 printing centres in the country and the coins are minted in another 4 centres. Then the printed currency is sent to the issue offices and these offices distribute the currency to the chest, not all banks can be the chest only a few designated banks act as chest for supply. There exist a third party who deals with filling and refilling of currency in ATMs.The chest also has limit for giving currency
4).Reverse logistics of RBI
The currency that comes back to the banks or chest, after genuineness of the currency is tested for providing counter after confirmation the RBI will reissue the currency
The designated banks appoint a party for re filling the currency.
5) Intermediaries are:
1. Printing centres
2. Issue offices
3. Chest banks
4. Refilling parties ex :CMS
5. Other designated banks
Jaya.Chhapru
USN-2GI18MBA15
1.Theory of determination of money
supply explains how a given supply of high-powered money (which is also called monetary base or reserve money) leads to multiple expansion in money supply through the working of money multiplier. how a small increase in reserves of currency with the banks leads to a multiple expansion in demand deposits and thus causes growth of money supply economy.
Deposit multiplier measures how much increase in demand deposits (or money supply) occurs as a result of a given increase in cash or currency, reserves with the banks depending on the required cash reserve ratio (r) if there are no cash drainage from the banking system.
2. The present version is a simplified structural model of short-term liquidity assessment/forecasting based on information on financial transactions conducted by the Reserve Bank of India with the general government and other financial market entities. Ever since market based reforms were initiated in India, financial markets have become closely interlinked and their operations relatively more complex. The easing of erstwhile regulatory controls and the dismantling of administered price mechanisms, the emergence of new products and services and arbitrage opportunities coupled with progression in the depth.
3.The Reserve Bank has been using ICCOMS application as its currency management solution for inventory management and accounting of currency chest transactions as well as currency management operations at its regional offices. ICCOMS is being replaced by an improved currency management module, with integration of currency management functions with the Core Banking Solution (e-Kuber) of the Reserve Bank. Some of the salient features of the new module include improved inventory management, near real time accounting of currency chest transactions, transit accounting and better tracking of CiC
4.The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly.
The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more home loan takers
So basically reverse logistics is done by repo and reverse repo rate also the notes which are faulty are sent back and cut and reproduced again
5.An intermediary in an online payment transaction accepting payments on behalf of the merchant from the customers and then transferring the money to the merchant’s account.
Payment Gateway (PG) A technology infrastructure provider to route and facilitate processing of an online payment transaction, without any involvement in the actual handling of funds.
Payment System (PS) A system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them, but does not include a stock exchange.
Payment system includes the systems enabling credit card operations, debit card operations, smart card operations, money transfer operations or similar operations.
Payment Card Industry - Data Security Standard (PCI-DSS) A set of security standards designed to ensure that all companies that accept, process, store or transmit card information maintain a secure environment.
Payment Application Data Security Standard (PA-DSS) A security standard for software vendors that develop payment applications. The standard aims to prevent storage of prohibited secure data (CVV2, PIN magnetic stripe).
Payment Gateway services provided by banks Includes services provided by banks for facilitating collection of electronic payments
Neha Khemalapure
USN:2GI18MBA28
1) Demand and supply
* The quantums of bank notes to be printed depends on the requirement for meeting the demand for banknotes,GDP growth and reserve stock requirements.
* It estimate the demand on the basis of the growth rate of economy, inflation rate by using the statistical techniques.
2) forecasting by RBI
RBI forecasting depends on countries GDP, inflation, deflation general market conditions
The forecasting also depends on the frequency of circulation and need by other banks.
3)how currency circulation is done
Bank notes that returns from circulation are deposited at the issue offices of RBI.the RBI subjects to process, authentication of banknotes and segregates them into notes that are fit for reissue.
4)reverse logistics
Money which comes back to bank is checked for genuineness and if notes are genuine they are reissued.
Unfit notes are send to rbi for shredding
5) intermediates for supply chain
Printing centers
Issue offices
Chest banks
Other designated banks
Prajakta Lagade
USN:2GI18MBA36
Demand and supply chain
RBI firstly will forecast its demand which is based on the circulation of the notes and the gross domestic conditions of the country.
The printing centre will forward the currency to the issue office who will later distribute the currency to the various designated banks by the RBI. ( All banks are not the designated banks ).
Forecasting by RBI
As it is mentioned RBI will forecast on the basis on the circulation of the currency in the country and the gross domestic conditions in the country.
Circulation of the currency
Our country has four facilities with the notes and coins are printed or manufactured. The currency is printed in for printing centres in the country then the printed currency is sent to the issue offices and this office is distribute the currency could you just not all banks can be the chest only few designated banks act as a chest for supply chest also has a limit for giving the currency.
Reverse logistics of RBI
The currency that comes to the chest where in the genuineness of the currency is tested for providing counter fit only then the RBI will reissue the currency.
Intermediaries:
Printing centre
Chest banks
Issue office
Refilling parties
Other banks
Neha patil
2GI18MBA27
1. DEMAND AND SUPPLY
based on the economic conditions and bank rules and regulations the bank would decide on demand and supply of money
2. Forecasting
Based on the circulation of money .
Based on GDP of country.
Other economic conditions like inflation etc
3.currency circulation
Notes are produced in 4 main offices located in india then supplied to 19 issue offices then the transfer to the chest branch then this chest transfer notes to the respective branches.
4. Reverse logistics
Issue offuces check for genuineess if the notes are genuine then they are reissued
Incase not then they are sent bacj to RBI.
5. Intermediaries involoved
Chests.
Issue offices
Commercial banks
1. IDENTIFY THE SUPPLY AND DEMAND IN RBI SUPPLY CHAIN?
Ans – By the help of RBI banks will circulate the notes across the nation. Then the forecasting & as per requirements of currency notes are printed in facilities. Which are located in Nasik, Devas, Mysore and Salgoni, coins are minted in Mumbai, Noida, Kolkata and Hyderabad.
Procuring:
1. RBI require cotton for printing notes.
2. RBI makes security thread implantation.
3. Intaglio printing is being done.
4. fluorescent ink
5. Watermark
Distributing: from printing arears they are sent to 19 issues offices of rbi ; later they will be circulated to currency chests of each place.
2. forecasting by RBI:
It depends upon the circulation which are taking consideration of aspects like GDP, PCI and othr important aspects prior to the notes printing.
3. HOW CURRENCY CIRCULATION CONDUCTED?
Ans - In our nation the currencies are printed in 4 places. And even coins are minted. once the printed notes is verified they will be sent to each chest for circulating the money.
for Ex: SBI Branch near STATION serves as chest for supplying notes to all banks & private parties to fill and refill the money in ATM
4. EXPLAIN THE REVERSE LOGISTICS OF RBI ?
Ans - If the banks or financial institutions are giving back amount to the specified chests the all notes will be verified. To detect the fake notes circulation too. I f found they will be sent to RBI for further steps like shred into pieces.
5. INTERMEDIARIES IN SUPPPLY CHAIN?
Ans - a) Printing Centres
b) CMS for ATM services
c) Issue offices
d) some of RBI specified banks.
e) online payment services
Karan Nilajkar
2GI18MBA18
1. Identify supply and demand in RBI supply chain?
RBI supply the money based on the monetory resources the demand of the public is determined by the size of monetory transaction and the supply is done by the medium of different banks so that every one can get their money.
2. Forecasting by RBI
Forecasting is done by the information collected by the RBI by the objectives of adequate available of notes to the customers. GDP also one of the important factor.
3. How currency circulation is conducted?
Currency is distributed by the officers which are produced by the RBI and this is done only by the few bank.
4. Explain the Reverse logistics of RBI
The currency that comes to the chest where in the genuineness of the currency is tested for providing counter fit only then the RBI will reissue the currency.
5. Intermediaries in supply chain?
Printing centre
Chest banks
Issue office
Refilling parties
Other banks
2GI18MBA07
AMOL M
1) The supply and demand in RBI supply chain are
Supply:
For RBI to print notes and mint coins they needs raw materials like cotton, intalio printing, ferric stainless steel etc
For the central bank the main duty is to control money supply to all other banks in India Curreny chest are allocated which help in smooth flow of money
Demand : All banks cant keep excess money with them , everyday they must deposit excess to the chest if falling short then can withdraw also from the chest
* How currency circulation conducted:
The currency is curculated to the currency chest and from their the banks can deposit extra or withdraw if needy.
Branches of same bank or combined can have currency chest as SBI use 3rd party to fill its atm
Pooling helps save cost as well as Time
* Forecasting by RBI:
RBI forecasting depends on countries GDP, inflation, deflation general market conditions
The forecasting also depends on the frequency of circulation and need by other banks.
* Reverse logistics:
The currency which is circulating comes back to bank through transactions
The old notes or torn notes are also collected and replaced
Reverse logistics helps to know the circulation of money in market
* Intermediaries in supply chain:
* Raw materials(cotton, )
* Intalio printing
*All Banks
*Currency chest
2GI18MBA22
1.RBI figures its interest dependent on the course of notes and furthermore by thinking about the gross local state of the nation If there should arise an occurrence of supply, the printing communities forward the money to the issue workplaces who further circulates money to the different cash chest.
2. Forecasting by RBI -
The banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
3. Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation.
4. The reverse repo rate was cut by 90 bps to 4 per cent.
Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more loan lending
5.Reverse logistics means the money which is coming back to branch or currency chest or issue officer after the check for genuiness of currency to avoid the counter fit .Currency which is not fit is returned to RBI.
Vinita Kadam
2GI18MBA58
1. Supply and demand in RBI supply chain:
The demand is forecasted by total stock of monetary available in economy. The demand for money is forecasted by the total amount of wealth held by household and companies.
2. Forecasting by RBI:
RBI forecasting depends on countries GDP, inflation, deflation general market conditions
The forecasting also depends on the frequency of circulation and need by other banks.
3. Currency circulation:
Currencies are printed at 4 different locations later they are mobilized to 19 offices of RBI. Later currencies are circulated to all chest branches from there to all branches.
4. Reverse logistics of RBI:
Currency comes back through branches to chest. Old and torn notes are circulated back to RBI and from this reverse logistics of currency RBI can forecast the circulation of money in the market.
5. Intermediaries in supply chain:
* Raw materials
* Intalio printing
*3rd party like CMS
*All Banks
*Currency chest
Kusum shidling
2GI18MBA21
1. Then the forecasting & as per requirements of currency notes are printed in facilities. Which are located in Nasik, Devas, Mysore and Salgoni, coins are minted in Mumbai, Noida, Kolkata and Hyderabad.
1. the banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
2.The public's demand for currency, as determined by the size of monetary transactions and the opportunity cost of holding money
2: -The banks or financial institutions are giving back amount to the specified chests the all notes will be verified.
-To detect the fake notes circulation too.
- Ever since market based reforms were initiated in India, financial markets have become closely interlinked and their operations relatively more complex.
-More notable is government securities market, in which average monthly turnover increased phenomenally from about Rs. 2,700 crore in 1995 to Rs 84,000 crore in 2001
- If found they will be sent to RBI for further steps like shred into pieces.
3: management of currency in circulation is performed by the Reserve Bank with the objectives of ensuring adequate availability of notes and coins in the economy and maintaining the quality of notes in circulation.
The government has authorised 4 printing of notes and 4 mintings coins
These are transferd to differnt chest all over the company.
This is done through its 18 regional Issue Offices/sub-offices and a wide network of currency chests, repositories and small coin depots spread across the country. In 2002-03, the sub-offices of the Issue Department at Bhopal and Chandigarh and the currency chest at Jammu were converted into full-fledged Issue Offices. Sixty-four additional currency chests and 46 additional small coin depots were opened during the year.
4: The reverse logistic comes in two phases
The Genuineess of currency are checked in the chest and if they do not pass a particular benchmark ll be recived
The RBI's decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants. the cash reserve ratio maintained by RBI will ensure that the benefit of the rate cut is directly.
The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders.
5: intermediaries like the --payment gateway
-payment aggregators.
-Chest bank
-Issue office
These intermediaries act as the bridge between the providers of goods / services (merchants) and those that require them (customers).
SANI PATIL
USN 2GI18MBA45
1.Demand and supply chain
There are two types of currency in India one is coin and second on is note so its its easy to meet the demand of people
RBI firstly will forecast its demand on the basis of circulation of the notes and the gross domestic conditions of the country.
The printing centre will forward the currency to the issue office who will later distribute the currency to the various designated banks by the RBI.
There are centres which notes and coins are printed like maysore , mumbai nasik Noida kolkata.
2.Forecasting by RBI
If businesses are going good in India or we reduce the import from foreign the currency will be increase and RBI will increase the printing of notes and coins
As it is mentioned RBI will forecast on the basis on the circulation of the currency in the country and the gross domestic conditions in the country.
3.Circulation of the currency
Our country has four facilities with the notes and coins are printed or manufactured. The currency is printed in for printing centres in the country then the printed currency is sent to the issue offices and this office is distribute the currency could you just not all banks can be the chest only few designated banks act as a chest for supply chest also has a limit for giving the currency.
4.Reverse logistics of RBI
There are many ways which banks notes are ciculakate like deposition by people, notes are damaged so exachge purpose, new scheme which is made by government so this will also be the reason, currency that comes to the chest where in the genuineness of the currency is tested for providing counter fit only then the RBI will reissue the currency.
5.Intermediaries:
Printing centre
Chest banks
Issue office
Refilling parties
Other banks
Akshata N
2GI18MBA05
1. Demand and supply in RBI supply chain: The total supply of money or stock is determined by the behavior of the banks in their decision concerning the size of the reserve ratio to maintain. The central bank liquidity is different. In the financial markets the easy of understanding transaction is financial asset at narrow bid ask spread.
2. Forcasting by RBI
They defended RBI push for the external benchmarking of retail loans of bank. The monitory policy RBI decided to keep interest rate unchanged. The gross domestic condition is taken into consideration. Here the short term liquidity forcasting based on the information transaction coducted by RBI.
3.RBI entrutrusted with the function of note issue and currency by preamble to RBI. The currency is printed in the four centres in country and coins are minted and another 4 centres. Their exist q third party center who deals with filling and refilling of curreencies by ATMs.
4.It is a return of the product / notes to print. The currency come back to the banks and it is tested for providing counter fit only then the RBI reissue the currency.
5.intermediaries:
* Non bank aggrigators
* printing centers
* chest bank
* issue officers
* other designated banks
Nikhil Sapare
2GI18MBA29
1. Demand and supply of RBI
RBI forecasts its demand based on the circulation of notes and also by considering the gross domestic condition of the country
In case of supply, the printing centres forward the currency to the issue offices who further distributes currency to the various currency chest ( are designated banks by the Rbi who can hold the currency from the issue offices)
2. Forecasting by RBI
Firstly RBI does forecasting depending upon the circulation of currency in the country.
The gross domestic condition of the country is also taken in consideration
Our country has 4 facilities where the notes and coins are are printed or manufactured
The Cotton that is used for manufacturing the notes is ida imported from New Zealand or taken from Indian manufacturers
3. Circulation of currency
The currency is printed in 4 printing centres in the country and the coins are minted in another 4 centres
Then the printed currency is sent to tge issue offices and these offices distribute the currency to the chest, not all banks can be the chest only a few designated banks act as chest for supply. The chest also has limit for giving currency
There exist a third party who deals with filling and refilling of currency in ATMs
4. Reverse logistics of RBI
The currency that comes back to the banks or chest, the genuineness of the currency is tested for providing counter fit only then the Rbi will reissue the currency
The designated banks appoint a party for re filling the currency
5. Intermediaries
1. Printing centres
2. Issue offices
3. Chest banks
4. Refilling parties ex :CMS
5. Other designated banks
Apoorva karva
2GI18MBA08
1.The forecasting of the demand for the currency is based on the circulation of the notes and gross domestic profit of the country. Based on the economic conditions and bank rules and regulations the bank would decide on demand and supply of currency.
2.It depends upon the circulation which are taking consideration of aspects like GDP, PCI and othr important aspects prior to the notes printing.
The bank circulates the money based on the GDP of the country.
3.In our nation the currencies are printed in four places. And even coins are minted at four places. Once the printed notes is verified they will be sent to each chest for circulating the money.And money is given to the customers by the bank.
4.The currency that comes back to the chest, after genuineness of the currency is tested for providing counter after confirmation,the Rserve bank of India will reissue the currency.
5. 1.Commercial banks
2. Chest banks.
3. Other designated banks
Prakash N
2GI18MBA38
1) demand and supply in RBI-
*The volume and value of banknotes to be printed every year.
* The quantums of bank notes to be printed depends on the requirement for meeting the demand for banknotes,GDP growth and reserve stock requirements.
* It estimate the demand on the basis of the growth rate of economy, inflation rate by using the statistical techniques.
SUPPLY-
RBI managed it's Currency operation through 19 issue offices located in india. A currency chest at kochi and wide network of currency chests.these offices receive fresh bank notes from the banknote printing process.
2) Forecasting by RBI -
The banking system’s need for reserves to discharge payment obligations. In fulfilling these needs, central banks also attempt to control and modulate liquidity conditions by varying the supply of bank reserves to ensure smooth functioning and stability of financial markets.
3) Currency circulation by RBI -
Bank notes that returns from circulation are deposited at the issue offices of RBI.the RBI subjects to process, authentication of banknotes and segregates them into notes that are fit for reissue.
4)Slowing economic expansion and a widening shadow banking crisis have led to calls for more liquidity, leading to some traders speculating that the RBI will move to a reverse repo mode, pulling inter-bank rates lower.The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
5) The intermediaries involved in payment collection and settlement between customers and merchants range from banks providing payment gateway services, non-bank aggregators of merchants and payment options / instruments, technology service providers supporting payment gateway operations and e-commerce marketplaces
1 Identify supply and demand in RBI supply chain
• Through RBI Banks circulate the notes across India.
• After forecasting and as per the needs of currency Notes are printed in Facilities which are located in Nasik, Devas, Mysore and Salgoni, coins are minted in Mumbai, Noida, Kolkata and Hyderabad
• Procurement:
a) RBI require cotton for printing notes.
b) Security thread is implanted
c) Intaglio printing is done
d) Water mark
e) Fluorescent Ink
• Distribution
From printing facilities, it is sent to 19 issue offices of RBI
Then the issue offices will distribute it to currency chest
2 Forecasting by RBI
Forecasting of the depends on circulation which are in Good quantity, Soiled Notes and also taking per capita GDP, WPI and other explanatory variables, in to consideration before printing the notes.
3 How currency circulation conducted explain reverse logistic of RBI
The money which is coming back to the chest or to the bank is being checked for genuineness or counterfeit notes if they find if it is fit for the reissue then it is recirculated and is it is soiled or couldn’t be circulated then it is sent back to RBI where they will shred it to pieces.
3. Intermediaries in Supply chain
Printing Facility
RBI
Issuing offices
Chest
Banks
ATMs
FirdousMohammed
2GI18MBA12
1.The Reserve Bank based on the demand requirement
indicates the volume and value of banknotes to be printed
each year to the Government of India which get finalized after
mutual consultation. The quantum of banknotes to be printed,
broadly depends on the requirement for meeting the demand
for banknotes, GDP growth, replacement of soiled banknotes,
reserve stock requirements, etc.
The Reserve Bank estimates the demand for banknotes on
the basis of the growth rate of the economy, inflation rate, the
replacement demand and reserve stock requirements by
using statistical models/techniques.
2. Reserve Bank of India decided to withdraw from circulation
all banknotes issued prior to 2005 as they have fewer security
features as compared to banknotes printed after 2005. It is a
standard international practice to withdraw old series notes.
The RBI has already been withdrawing these banknotes in a
routine manner through banks. It is estimated that the volume
of such banknotes (pre-2005) in circulation is not significant
enough to impact the general public in a large way and the
members of public may exchange the pre-2005 series
banknotes at bank branches at their convenience.
3. The Reserve Bank presently manages the currency
operations through its 19 Issue offices located at
Ahmedabad, Bangalore, Belapur, Bhopal, Bhubaneswar,
Chandigarh, Chennai, Guwahati, Hyderabad, Jaipur, Jammu,
Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, New Delhi, Patna,
Thiruvananthapuram, a currency chest at Kochi and a wide
net work of currency chests. These offices receive fresh
banknotes from the banknote printing presses. The Issue
Offices of RBI send fresh banknote remittances to the
designated branches of commercial banks.
The Reserve Bank offices located at Hyderabad, Kolkata,
Mumbai and New Delhi (Mint linked Offices) initially receive
the coins from the mints. These offices then send them 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.
4. Banknotes returned from circulation are deposited at the
Issue offices of the Reserve Bank. The Reserve Bank subjects
these to processing, authenticates banknotes for their
genuineness, segregates them into notes fit for reissue and
those which are unfit, for cancellation. The banknotes which
are fit for reissue are sent back in circulation and those which
are unfit for reissue are destroyed by way of shredding after
completion of examination process. Coins do not come back
from circulation, except those which are withdrawn.
5) The intermediaries are
Printing officer
Issue officer
Currency chest
RBI
Prajwal B. G.
2GI18MBA37
1.Demand and supply chain
There are two types of currency in India one is coin and second on is note so its its easy to meet the demand of people
RBI firstly will forecast its demand on the basis of circulation of the notes and the gross domestic conditions of the country.
The printing centre will forward the currency to the issue office who will later distribute the currency to the various designated banks by the RBI.
There are centres which notes and coins are printed like maysore , mumbai nasik Noida kolkata.
2.Forecasting by RBI
If businesses are going good in India or we reduce the import from foreign the currency will be increase and RBI will increase the printing of notes and coins
As it is mentioned RBI will forecast on the basis on the circulation of the currency in the country and the gross domestic conditions in the country.
3.Circulation of the currency
Our country has four facilities with the notes and coins are printed or manufactured. The currency is printed in for printing centres in the country then the printed currency is sent to the issue offices and this office is distribute the currency could you just not all banks can be the chest only few designated banks act as a chest for supply chest also has a limit for giving the currency.
4.Reverse logistics of RBI
There are many ways which banks notes are ciculakate like deposition by people, notes are damaged so exachge purpose, new scheme which is made by government so this will also be the reason, currency that comes to the chest where in the genuineness of the currency is tested for providing counter fit only then the RBI will reissue the currency.
5.Intermediaries:
Printing centre
Chest banks
Issue office
Refilling parties
Other banks
Vittal SB
2GI18MBA59
1. Identify supply and demand in RBI supply chain?
RBI supply the money based on the monetory resources the demand of the public is determined by the size of monetory transaction and the supply is done by the medium of different banks so that every one can get their money.
2. Forecasting by RBI
Forecasting is done by the information collected by the RBI by the objectives of adequate available of notes to the customers. GDP also one of the important factor.
3. How currency circulation is conducted?
Currency is distributed by the officers which are produced by the RBI and this is done only by the few bank.
4. Explain the Reverse logistics of RBI
The currency that comes to the chest where in the genuineness of the currency is tested for providing counter fit only then the RBI will reissue the currency.
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