---
title: "How is Indian currency generated?"  
description: "How is Indian currency generated?"  
author: "twinkle das"  
published: 2018-03-08  
canonical: https://answers.mindstick.com/qa/37452/how-is-indian-currency-generated  
category: "currency"  
tags: ["currency"]  
reading_time: 1 minute  

---

# How is Indian currency generated?

How is [Indian](https://www.mindstick.com/news/2471/wazirx-received-828-requests-from-indian-international-law-enforcement-agencies) [currency](https://www.mindstick.com/news/2105/rbi-has-released-a-concept-note-on-central-bank-digital-currency-and-digital-rupee) generated?

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## Answers

### Answer by Shriyam Srivastava

The [Reserve Bank of India](https://www.rbi.org.in/) generates the currency nationwide, in the form of rupee notes. The RBI has the right to print up to 10,000 rupee notes. Section 22 of the RBI Act, directed in 1934, gives it the authority to issue currency notes.

The RBI possesses a monopoly over every currency note except the 1 rupee note. It is issued by the **Ministry of Finance** and distributed by the RBI all over the country. \
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On the other hand, the [Government of India](https://en.wikipedia.org/wiki/Government_of_India) mints the coins to deploy them all over the country. \
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## The printing of currency notes in India is done with the help of the Minimum Reserve System:

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![How is Indian currency generated?](https://answers.mindstick.com/questionanswer/3845d62a-b5d7-4dac-a032-f7a0ab56f804/images/b4e44115-ca92-47f7-a6b4-c16a6dff4b10.png) \
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After maintaining this Minimum reserve, the RBI can print the notes of currency as per the guidelines of the government and the requirements of the nation.


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Original Source: https://answers.mindstick.com/qa/37452/how-is-indian-currency-generated

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