Examine the statutory framework under the RBI Act, 1934 governing currency design and issuance in India.

Currency issuance in India is not an executive discretion but a statutory function structured by Chapter III of the RBI Act, 1934, which distributes powers between the Reserve Bank and the Central Government [1]. The Act makes the RBI the issuing authority while reserving final approval on design and material to the Government — a deliberate balance of technical expertise and political accountability.

Sole right of issue (Section 22)

• The RBI holds the sole right to issue banknotes in India, exercised through a separate Issue Department whose assets are ring-fenced from banking operations [1].
• This monopoly ensures uniformity of the currency and centralised control over the money supply.

Denominations (Section 24)

• Notes may be issued in specified denominations up to ₹10,000; the Central Government may, on the RBI's recommendation, direct discontinuation of any denomination [1].

Design, form and material (Section 25)

• The design, form and material of banknotes shall be as approved by the Central Government after considering the recommendations of the RBI's Central Board [1].
• The current polymer initiative illustrates this route: the RBI routed its proposal under Section 25, and the Centre approved one billion pieces each of ₹10 and ₹20 polymer banknotes for field trials, to circulate alongside paper-substrate notes [2].

Legal tender and liability (Sections 26, 33-34)

• Every banknote is legal tender guaranteed by the Central Government, and the Government may, on the Board's recommendation, declare any series to cease legal tender by notification [1].
• Issued notes remain a liability of the Issue Department, backed by prescribed assets — the statutory discipline behind note issue [1].

Assessment: the framework is sound in principle, but implementation capacity, not law, is the binding constraint — the 2012 polymer trial in five cities was shelved by 2017 over note-sorting technology gaps [3]. Going forward, pairing Section 25 approvals with infrastructure readiness and RBI's Clean Note Policy would make the statutory design deliver its intended durability and public confidence in the currency.