FLO Ahmedabad, under the leadership of Chairperson Madhu Banthia, hosted a Financial Literacy session, “Demystifying Demonetization & The Making Of Currency” at Ahmedabad Management Association (AMA). Financial Literacy initiative, led by head Deval Soparkar, focused on equipping women with knowledge and tools to take care of their personal finances, business capital, and investments.
The event featured speaker, Shri Kaza Sudhakar, Former MD, Currency Department, RBI, to talk about demystifying demonetization—why it happens, its global context, how often it has occurred in India and abroad, its rationale, and its impact. It also explained the science, cost, and planning behind India’s currency printing.
Key Highlights
- Shared past instances of demonetization in India and in other countries, with insights into the rationale behind each and their economic and social impact.
- Explained the cost of printing coins versus notes, and why notes dominate despite their shorter lifespan.
- Outlined the life cycle of a note and why certain denominations require more frequent replacement.
- Clarified the reasons behind changes in the size and design of notes over time.
- Introduced members to the 17 security features that distinguish genuine notes from counterfeits.
- Emphasized that demonetization is a strategic, carefully planned decision, not an irrational move.
- Highlighted India’s progress in indigenously producing paper, inks, and printing technology.
- Explained the logic behind motifs—whether monuments, animals, or birds—chosen to reflect India’s heritage and ensure its currency is uniquely Indian.
Key Takeaways
- Demonetization is a global practice, applied in India and other nations, always with clear objectives and impacts.
- Coins last longer but are costlier to produce; notes are more practical despite shorter lifespans.
- India is now self-reliant in every aspect of currency production.
- Familiarity with the 17 security features helps safeguard against counterfeits.
- Printing money involves high security and high cost, with deliberate choices about durability, size, and design.
- Currency motifs are selected to symbolize India’s heritage and identity.
Impact
The session deepened members’ understanding of demonetization both in India and globally, highlighting its strategic importance and impact. It also shed light on the meticulous science behind printing and design choices. We were delighted by the presence of Mrs. Sudhakar, herself a former RBI official, and Mr. & Mrs. Das, adding depth to the evening with their RBI expertise. This session is a testament to FICCI FLO Ahmedabad’s efforts towards empowering women through financial independence and entrepreneurial success.