📖 Chapter 5 of 11 · Smart Money Basic (Multi Indian Language) · Class 4–7
Chapter 4 · The Indian Rupee — Notes and Coins
The money we use in India is called the Indian Rupee, written with the symbol ₹. But have you ever wondered who makes our notes and coins, and how we can tell a real note from a fake one? Let us find out.
Who makes our money?
Our currency notes are printed by the Reserve Bank of India (RBI) — the country's most important bank, based in Mumbai. Our coins are made in government mints in cities like Mumbai, Kolkata, Hyderabad and Noida. Making money is a very serious job, so it is done only by the government — never by anyone else. Printing fake notes is a serious crime!
Key Word
The Reserve Bank of India (RBI) is India's central bank. It prints our notes, looks after the value of the rupee, and guides all the other banks.
The rupee family
Today our coins come in denominations of ₹1, ₹2, ₹5, ₹10 and ₹20. Our notes come in ₹10, ₹20, ₹50, ₹100, ₹200, ₹500. Each note has a different colour and size so that people — including those who cannot see well — can tell them apart by touch.
Fun Fact!
The rupee symbol ₹ was designed by an Indian, D. Udaya Kumar, and adopted in 2010. It blends the Devanagari letter “र” (ra) with the Roman letter “R”, and the two lines at the top stand for the Indian tricolour and the equals sign!
Story Time — Arjun at the Fish Market
Arjun · Kochi, Kerala
Arjun loved going with his grandmother to the busy fish market near the Kochi harbour. One morning, Grandma bought fish worth ₹340 and handed the seller a ₹500 note. The seller held the note up to the light, tilted it, and ran his thumb across it before giving back the change.
“Why did he check the note like that, Ammamma?” Arjun asked. His grandmother explained, “He is making sure it is a real note and not a fake one, mon. A real note has special hidden marks — a silver thread inside, a picture of Gandhiji that appears when held to light, and raised print you can feel with your fingers.”
Arjun took the change — one ₹100 note, one ₹50 note and one ₹10 note — and checked each one carefully, just like the seller had. “All real, Ammamma!” he announced proudly. His grandmother laughed, “You are learning to be a smart handler of money already!”
Solved Examples
Think first, then read the answer!
1. Grandma paid ₹500 for fish worth ₹340. How much change should she receive?
Show answer
Answer: Change = ₹500 − ₹340 = ₹160. She should get back ₹160.
2. Name two ways you can tell a real currency note from a fake one.
Show answer
Answer: A real note has a silver security thread running through it, and Mahatma Gandhi's picture becomes visible when you hold it up to the light. Real notes also have raised (bumpy) printing you can feel with your fingertips.
3. Priya wants to pay exactly ₹285 using the fewest possible notes and coins. How can she do it?
Show answer
Answer: ₹200 + ₹50 + ₹20 + ₹10 + ₹5 = ₹285. That is 5 pieces — one of the smallest combinations.
4. Who prints India's currency notes, and where is this bank based?
Show answer
Answer: The Reserve Bank of India (RBI) prints our currency notes. It is based in Mumbai.
Check Your Understanding
Q1. What is the full form of RBI, and what is its main job?
Q2. List all the coin and note denominations used in India today.
Q3. Why do different notes have different colours and sizes?
Q4. If you pay ₹1,000 for goods worth ₹765, what change do you expect?
Q5. Write down three security features that help us spot a real note.
Q6. Who designed the rupee symbol ₹, and in which year was it adopted?
Check your understanding — Chapter 4
Tap an answer to check it instantly. These are for practice — nothing is saved or sent.
Q1. Who prints India's currency notes?
- Any big bank
- The Reserve Bank of India
- The Post Office
Show answer
B. The Reserve Bank of India
Q2. Which one helps you spot a REAL note?
- It is very shiny
- A silver thread and raised print you can feel
- It smells nice
Show answer
B. A silver thread and raised print you can feel
Q3. Why do notes have different colours and sizes?
- So people can tell them apart easily, even by touch
- Just for decoration
Show answer
A. So people can tell them apart easily, even by touch