Each denomination of Indian currency has a distinct worth. Except for the Re 1 note, which carries the name of India’s Finance Secretary, the value of the notes in circulation is under the control of the RBI governor. All coins, except the Re 1 component, bear the Governor of the RBI’s signature. The manufacturing of money was handled by the Indian government until 1935. However, the Reserve Bank of India was founded on April 1, 1935. The Reserve Bank of India Act, of 1934 established the RBI and gave it the responsibility of managing the country’s money. Its headquarters is in Mumbai, Maharashtra. Notably, the Reserve Bank of India Act’s Section 22 grants the Reserve Bank the authority to release bills.

The expenses for Rs. 100, 500, 2000, and so forth must have the words “I promise to pay 100/500/2000 rupees to the holder” on them. The bill also bears the signature of the chairman of the RBI. For the uninitiated, the Minimum Reserve System is the foundation upon which Indian banknotes are printed.

To reassure the holder that the Reserve Bank has gold assets equivalent to their two hundred-rupee note, the RBI issues a declaration. Other notes have identical text, such as “Gold is safe with RBI equal to the value of your notes,” printed on them. In other words, there is an assurance that the bearer of a note for 100 or 200 rupees is responsible for paying 100 or 200 rupees. This is the RBI’s guarantee of the bills’ worth.

This promissory note guarantees the note bearer that the RBI will never fail under any circumstances. If someone has a 100-rupee note, they don’t need to fret about its exchange value because the RBI is required to give them gold or products equivalent. These promissory notes bolster the belief of the Indian currency holder — whether they are Indian or foreign — in the national money.

The promissory note printed on the currency provides the bearer with the assurance that the note is accepted as legal tender in the nation, eliminating any risk associated with the recipient’s possession of the currency. It is an unequivocal declaration by the nation’s central bank that it is obligated to reimburse the currency bearer for the stated sum. If the RBI Governor’s declaration is not printed on the currency, foreigners may hesitate to use it because of the uncertainty of the currency’s conversion rate.

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