Questions and Answers
What is the total amount accounted for currency management infrastructure based on the provided data?
Which institution is primarily responsible for the functions related to currency issuance?
As of March 31, 2024, which institution accounted for the highest share of currency chests?
What was the amount for 50 currency notes listed in the first section of the data?
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Which entity is indicated by the abbreviation 'SPMCIL'?
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Who undertook the institutionalisation of the certification process for note sorting machines?
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What is the purpose of the certification standards for note sorting machines as outlined?
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What was the publication date of the technical standards for note sorting machines?
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Which institution's panel was involved in finalising the technical standards for note sorting machines?
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What type of research is conducted at the adversarial analysis laboratory at Mysuru?
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Study Notes
Institutionalisation of Certification
- The Bureau of Indian Standards (BIS) has institutionalised the certification process for note sorting machines (NSMs) following the Utkarsh 2.0 sorting standards.
- This initiative was prompted by the Reserve Bank of India (RBI), involving a panel of industry experts, BIS standard setters, and banking professionals to establish technical standards for NSMs.
- The ‘Note Sorting Machines (NSMs) Specification IS 18663: 2024’ was officially published in ‘The Gazette of India’ on March 19, 2024, ensuring uniformity in note sorting across banks.
Currency Management Infrastructure
- An action plan for redesigning and modernising currency management architecture includes network optimisation, technological solutions, and automation.
- Implementation will occur in phases involving various stakeholders to enhance processes in currency management.
- The Reserve Bank operates through 19 issue offices, 2,794 currency chests, and 2,460 small coin depots across India.
Banknotes in Circulation
- In 2023-24, banknotes in circulation rose by 3.9% in value and 7.8% in volume, compared to prior year increases of 7.8% and 4.4%.
- The share of ₹500 banknotes increased, while the share of ₹2000 banknotes decreased, reflecting the latter's withdrawal from circulation.
- ₹2000 banknotes were introduced in November 2016, primarily to meet demand following the demonetisation of ₹500 and ₹1000 notes, but printing ceased in 2018-19 as alternatives became available.
Survey on Coin and Banknote Usage
- A survey sampled 22,725 respondents, noting improved availability of ₹100 and above banknotes, with over 70% satisfaction reported.
- Approximately 63% of respondents were from rural/semi-urban areas, while 80% reported no scarcity of banknotes in the past year.
- Trend analysis indicates a shift towards digital payments as transaction sizes increase, influencing public preference away from cash.
Modernisation Efforts
- The Reserve Bank's ongoing efforts focus on the modernisation of currency management infrastructure, including the replacement of outdated machines.
- Actions to enhance delivery of banknotes/coins and explore sustainable disposal methods for currency briquettes are also part of the strategy.
- The implementation of BIS technical standards for NSMs is crucial for strengthening the overall integrity of banknote operations and public confidence.
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Description
This quiz explores the institutionalisation of the certification process for note sorting machines (NSMs) in accordance with the Utkarsh 2.0 sorting standards. Test your understanding of the mechanisms and standards involved in certifying these machines. Gain insights into how certification aligns with prescribed sorting standards.
