—In India, currency forms a significant part of
money supply. Money supply is generally viewed in two senses.
Money supply in the conventional sense includes notes and
coins in circulation (nominally claims against the central bank
and / or the government of the country) plus those deposits
with banks which are repayable on demand. This is also
referred to as the narrow definition of money supply and is
widely known as M1. When time deposits with banks are
added to M1, the definition of money supply becomes broader
and is in India known as M3. However, this research study
focuses only on the aspect of banknotes and coins, which is a
part of M1, but plays a vital role in currency management.
—Coinage, currency, dinamination, circulation.
Srinivasan Chinnammai is with Department of Economics, University of
Madras, Chepauk, Chennai 600 005, Tamil Nadu, India (e-mail:
Cite:Srinivasan Chinnammai, "A Study on Currency and Coinage Circulation in India," International Journal of Trade, Economics and Finance vol.4, no.1, pp. 43-47, 2013.