Currency and Coinage of India

Currency and Coinage of India

Currency and Coinage

Security Printing and Minting Corporation of India Ltd. (SPMCIL)

• Security Printing and Minting Corporation of India Ltd. (SPMCIL) is the only PSU under the Department of Economic Affairs.

• It was formed after the corporatisation of nine units, i.e., four mints, four presses (two currency note presses and two security presses), and one paper mill, which were earlier functioning under the Ministry.

Incorporation

• The company was incorporated in 2006 under the Companies Act, 1956.

• It is engaged in the manufacturing of security paper, minting of coins, printing of currency and bank notes, non-judicial stamp papers, postage stamps, travel documents, etc.

Functions and Supplies

The Company supplies:

• Currency/banknotes and coins to the RBI

• Non-judicial Stamp papers to various state governments

• Postal stationery and stamps to the postal department

• Passports, visa stickers, and other travel documents to the Ministry of External Affairs

Other products include commemorative coins, MICR and Non-MICR cheques, etc.

Joint Venture

• SPMCIL has also set up a 50:50 joint venture in 2010 with Bhartiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL) in the name of Bank Note Paper Mill India Private Limited (BNPMIPL), a Greenfield project of Bank Note Paper Mill with a capacity of 12,000 MT per annum, having two state-of-the-art technology paper lines of 6,000 MT capacity per annum each.

[Source: INDIA 2022]

Demonetisation of Banknotes

The government demonetised 500 and 1,000 banknotes on November 8, 2016. All 500 and 1,000 banknotes of the Mahatma Gandhi series ceased to be legal tender in India from November 9, 2016.

Introduction of New Notes

• New 500 and 2,000 banknotes of the Mahatma Gandhi New Series, in exchange for the old banknotes, were announced.

• However, the banknote denominations of 100, 50, 20, 10, and 5 of the Mahatma Gandhi series remained legal tender and were unaffected by the policy.

Purpose of Demonetisation

The government said the demonetisation move was an effort to:

• Stop counterfeiting of the current banknotes, allegedly used for funding terrorism

• Crack down on black money in the country

[Source: INDIA 2021]

Final Thoughts

The Security Printing and Minting Corporation of India Ltd. (SPMCIL) is the backbone of India’s currency and coinage system. Formed in 2006, it manages mints, presses, and even a paper mill to produce currency notes, coins, passports, stamps, and more. It supplies money to the RBI, legal papers to state governments, and travel documents to the Ministry of External Affairs, making it vital in our everyday lives.

In 2010, SPMCIL partnered with BRBNMPL to set up the Bank Note Paper Mill India Pvt. Ltd., which ensures India’s self-reliance in note-making paper.

A turning point came in 2016 when the government announced the demonetisation of ₹500 and ₹1,000 notes. While this caused major changes for people across the country, new ₹500 and ₹2,000 notes were introduced, while smaller denominations stayed valid. The move aimed to fight black money, counterfeiting, and terror funding, highlighting how currency policies directly impact citizens.