CURRENCY SYSTEM IN INDIA

Viruthagirishwaran R
22DBALB032
B.A., LL.B.(Hons)
Macroeconomics
INTRODUCTION
● The Indian currency system is a very important thing. It's like the blood of our
economy. Without it, our economy wouldn't work. Today, we'll explore how our
money has changed over time and how it's used in our daily lives.

● A long time ago, people used to exchange things directly. Like, if you had
something I wanted, we'd trade. This is called the barter system. Later, we started
using things like cowrie shells and different kinds of coins. Even different rulers
had their own types of money, like the Mughals and the Briti sh.
 There are three main types of money.
INDIAN ● First, we have coins, which you can touch and hold.
● Second, there are paper notes with pictures on them.
CURRENCY ● And lastly, there's digital money, which you can use on
your phone or computer.
● Our money comes in different sizes and values. Coins come in various sizes, from
small to big. Paper notes have different values, like 10, 100, and 500. This helps us
buy things of all prices.

● The symbol for our currency is ₹, which is called the "Indian Rupee." It helps us
know when we're talking about Indian money. Having our own symbol is important
for our identity in the world.
 ● Modern money has special marks
and designs to protect it from
being copied. These marks include

SECURITY things like watermarks,

holograms, and shiny threads.
These features make it hard for
bad people to make fake money.
F E AT U R E S
R B I is like the boss of our money. They make sure there's enough money in the
country, and they decide how much money is worth. They also watch over banks
to keep our money safe.

Sometimes, the government takes out some money from circulation. This is
called "demonetization." It's happened a few times in India, like in 2016. They
do this to fight corruption and make the economy better.
CURRENCY POLICIES
● The government is always trying to make our money better. They've introduced new
money designs with fancy security features. They also want people to use banks
more and cash less.

● Nowadays, we can use our phones or computers to pay for things. It's super
convenient. There are apps like U P I and digital wallets. Some people also use
cryptocurrencies, like Bitcoin, for online payments.

● In the future, we might use even more digital money. Imagine paying for everything
with your phone! The government is also thinking about creating a special digital
currency just for India.
C O N C LU S I O N
Our money has a rich history, and the Reserve Bank of India takes care of it. It's
changing with digital options, and the future looks exciting.
But there are challenges too. Some people make fake money, and it can be hard to
stop them. Also, in remote areas, not everyone has access to digital money. So,
there's still work to do.