<P> The bank issues and exchanges currency notes and coins and destroys the same when they are not fit for circulation . All the money issued by the central bank is it's monetary liability, that is central bank is obliged to back the currency with assets of equal value, to enhance public confidence in paper currency . The objectives are to issue bank notes and give public adequate supply of the same, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves . RBI maintains the economic structure of the country so that it can achieve the objective of price stability as well as economic development because both objectives are diverse in themselves . For printing of notes, the Security Printing and Minting Corporation of India Limited (SPMCIL), a wholly owned company of the Government of India, has set up printing presses at Nashik, Maharashtra and Dewas, Madhya Pradesh . The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), also has set up printing presses in Mysore in Karnataka and Salboni in West Bengal . In all, there are four printing presses . And for the minting of coins, SPMCIL has four mints at Mumbai, Noida (UP), Kolkata and Hyderabad for coin production . Commercial banks create credit . It is the duty of the RBI to control the credit through the CRR, bank rate and open market operations . As banker's bank, the RBI facilitates the clearing of cheques between the commercial banks and helps the inter-bank transfer of funds . It can grant financial accommodation to schedule banks . It acts as the lender of the last resort by providing emergency advances to the banks . It supervises the functioning of the commercial banks and takes action against it if the need arises . The RBI also advices the banks on various matters for example Corporate Social Responsibility . </P> <P> In order to curb the fake currency menace, RBI has launched a website to raise awareness among masses about fake notes in the market . www.paisaboltahai.rbi.org.in provides information about identifying fake currency . </P> <P> On 22 January 2014; RBI gave a press release stating that after 31 March 2014, it will completely withdraw from circulation all banknotes issued prior to 2005 . From 1 April 2014, the public will be required to approach banks for exchanging these notes . Banks will provide exchange facility for these notes until further communication . The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender . This would mean that banks are required to exchange the notes for their customers as well as for non-customers . From 1 July 2014, however, to exchange more than 15 pieces of ` 500 and ` 1000 notes, non-customers will have to furnish proof of identity and residence as well as show aadhar to the bank branch in which she / he wants to exchange the notes . </P> <P> This move from the Reserve Bank is expected to unearth black money held in cash . As the new currency notes have added security features, they would help in curbing the menace of fake currency . </P>

Aims and objectives of central bank in india