Denomination

Indian Economy glossary

Topic: Money: From Barter to Digital Currency · NCERT: Class 7, Ch 11 "From Barter to Money"

Meaning

A denomination is the face value in which coins and notes are issued, such as ₹1, ₹5 or ₹100. Having many denominations lets people make both small and large payments easily. Coins are used for small values and notes for large values.

  • Current coins: 50 paise, ₹1, ₹2, ₹5, ₹10 and ₹20.
  • Current notes: ₹10, ₹20, ₹50, ₹100, ₹200 and ₹500.

Example

  • The ₹1000 note was demonetised in November 2016.
  • The ₹2000 note was introduced in November 2016. On 19 May 2023, RBI announced it would be withdrawn from circulation, but it remains legal tender.
  • Before decimalisation on 1 April 1957, the old units were 1 rupee = 16 annas = 64 pice = 192 pies.

Don't confuse with

  • Divisibility: divisibility is the property of being split into small parts. Denominations are the actual units that make money divisible.

Related concepts

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