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Indian Economy

Notes The language panels on Indian rupee banknotes display the denomination of the note in all the
national languages of India.

9.3 Tactile and Security features

Now in this section, let us discuss the tactile and security features:
9.3.1 Tactile Features

You must understand that the Indian currency notes and coins have numerous tactile and graphic
structures to support meaningfully large number of its uneducated population, and assistance in
speedy identification of various denominations.
Size: All notes and coins have different sizes.
Colour: All notes have different colour combinations.

Texture: Most of the advanced denomination records have their denominations and some
of the topographies printed. Also, diverse ordered forms (triangle, rectangle, etc.) are
embossed on left of watermark window for visually reduced.

9.3.2 Security Features

It is important to note the following security features:

Watermark: White side panel of notes has Mahatma Gandhi watermark.
Security Thread: All notes has silver security band with engravings noticeable when held
in contradiction of light.

Latent Image: Higher denominational notes show note’s denominational worth in numerals
when held parallel to eye level.

Microlettering: Numeral denominational worth is noticeable under magnifying glass
among security thread and watermark.
Fluorescence: Number panels glow below ultra-violet light.

Optically Variable Ink: Notes of ` 500 and ` 1000 have their numbers printed in optically
adjustable ink. Number seems green when note is held flat but variations to blue when
viewed at angle.
Back-to-back Registration: Floral pattern printed on front and back of note coincides
when watched against light.

9.4 Reserve Money

This section focuses on the reserve money and its features:
Currency in circulation comprises notes in circulation, rupee coins and small coins. Bank’s
deposits are reserves maintained as cash reserve ratio by banks in the current account with
the Reserve Bank of India.
It forms the basis on which money supply builds and circulates in the system.

Reserve Bank of India imparts liquidity by growing reserve money.
Reserve money is also known as high power-driven money, monetary base, base money
and is represented as M0.

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