why does governement orders to print currency notes?
The government orders to print currency notes because of the following reasons:
1. Bank notes are required for circulation purpose.
2. For replacement of soiled notes and
3. For reserve requirement.
The RBI estimates the demand for currency notes on the basis of the growth rate of the economy, the replacement demand and reserve requirements and print the currency notes accordingly.
1. Bank notes are required for circulation purpose.
2. For replacement of soiled notes and
3. For reserve requirement.
The RBI estimates the demand for currency notes on the basis of the growth rate of the economy, the replacement demand and reserve requirements and print the currency notes accordingly.