taksal, currency, Indian govt. Mint, RBI

Taksal(Mint) 

In India, all legal currency is issued by RBI (Reserve Bank of India) except all coins and 1 rupee note which are issued by mints it is also popularly known as taksal. Taksal comes under the control of central government. There are a total of 4 mints in India which are in
Mumbai, Maharashtra
Kolkata, West Bengal
Hyderabad, Telangana
Noida, Uttar Pradesh

 Reserve bank of India

All Indian currency except 1 rupee note and coins are issued by RBI. It is the central bank of India. Every country has 1 central bank for example:- India-RBI, U.S- Federal Reserve System‍, China-People's Bank of China, Canada-Bank of Canada, U.K-Bank of England, etc. Reserve Bank of India was incorporated under the Reserve Bank of India act 1934. Reserve Bank of India not just issue currency but it manages the supply of money in the economy also. There are some ways how RBI control the money supply.

1.Repo rate: -Repo rate is the rate at which the central bank of a country lends money to commercial bank. If central bank want to decrease the money supply in economy then central bank increase repo rate and hence banks take less loans and it will decrease the money supply and vice-versa.

2.Reverse repo rate: -Reverse repo rate is the rate at which the central bank of a country borrows money from commercial bank. If central bank increase reverse repo rate then the commercial bank will give more money to the central bank then their ability to give loans to the general public will decrease hence money supply decreases and vice-versa.

3.CRR:-Cash reserve ratio is the ratio of the total deposit that commercial banks have to maintain with RBI. If a country is in inflation then the central bank of that country will increase CRR then money supply of country will decrease and inflation level will decrease as well and if there is deflation in country then central bank will decrease CRR.

4.SLR:-Statutory liquidity ratio is the ratio of whole deposit that banks have to maintain with them self. If a country is in inflation then the central bank of that country will increase SLR then the power of giving funds of the commercial bank will decrease and inflation level will decrease as will and if there is deflation in country then central bank will decrease SLR.

5.Open market operations:-Open market operations are buying and sealing of government securities and bonds. If the government want to increase the money supply in economy then the government will sell its securities and vice-versa.

FAQ about Taksal

1. How many taksal in India?

There are 4 Taksal in India there are located at:-

Mumbai, Maharashtra
Kolkata, West Bengal
Hyderabad, Telangana
Noida, Uttar Pradesh

2. Do all coin of all taksal in India look the same?
All coins of taksals look same but with only one difference just to identify from were the coin is originated.