This article is being written on the night of 29th Sept 2025.

Today there is a digital as well as paper form of currency exchange that people call money. Money is controlled by the government. All money has either originated from a Goverment Bank like RBI (Reserve Bank of India) or being gathered from a foreign Goverment Bank via Wire Transfers. In essence for the Indian context, money is generated by the government.

one_rupee_note

The currency rupee (rupaya) in circulation is completely being controlled by the Government of India or Reserve Bank of India. Reserve Bank of India owned by the Ministry of Finance, Government of the Republic of India, it is responsible for the Indian rupee. Although, rupee existed way before Government of India was formed.

Now, in todays’ context, lets understand how money is being created and being destroyed. New notes and coins are launched by the government.

1000 rupee (2000-2006) 2000 rupee (2016-2019)
1000_rupee_note 2000_rupee_note

Now, there are many questions that arise, where the Government of India get the money from ?

Money is being generated as being printed on paper or numbers being added in a bank account is considered same in the article for simplicity.

We all believe that money is a system of exchange, so when money is being generated how its value is determined.

What value does the Government give in exchange for generating money ? And another important perspective is the receiver of this exchange, as it happens.

What is being exchanged and with what entity in return for money ?

So, this question is a question which will change all preconcieved notions of money in your mind. And we will get the answer to this question here in this article, there will be no part 2 for this.

Government of India

Reserve Bank of India

World Bank

International Monetary Fund

US Treasury

!https://en.wikipedia.org/wiki/Gerontocracy