Chapter III — Central Banking Functions

Section 24: Denominations of notes

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 24 governs denominations of bank notes and provides the statutory framework for the denominations that may be issued and for discontinuing or restricting denominations by Central Government action on RBI recommendation where the Act so provides.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 24 in 2 minutes

Legal effectSection 24 governs denominations of bank notes and provides the statutory framework for the denominations that may be issued and for discontinuing or restricting denominations by Central Government action on RBI recommendation where the Act so provides.

Operative ruleThe section is about denomination authority, not about demonetisation of an already issued series; legal-tender cessation is separately dealt with in Sections 26 and 26A.

Connected lawA denomination announcement should be checked against the Gazette/RBI instrument that authorises or specifies it.

File evidenceFor currency advice, distinguish 'denomination permitted to be issued' from 'particular series/denomination ceasing to be legal tender'.

Statutory structure and clause / subsection decode

This map separates the operative limbs of this provision so thresholds, powers, conditions and exceptions are not collapsed into a single summary.

Rule 1

The section is about denomination authority, not about demonetisation of an already issued series

Rule 2

legal-tender cessation is separately dealt with in Sections 26 and 26A.

Connected rule

A denomination announcement should be checked against the Gazette/RBI instrument that authorises or specifies it.

Worked practical example

Facts. The existence of a ₹2,000 denomination under the Act does not answer whether a particular series is in circulation or accepted; the relevant RBI/Government notification must be checked.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 24 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. A denomination announcement should be checked against the Gazette/RBI instrument that authorises or specifies it.
Do not convert an exception, exemption or discretionary RBI/Government power into an automatic entitlement. Record the authority, conditions and effective date.
Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.

Connected provisions and instruments

Section 24 has no universal instrument dependency in this package. Add an RBI circular or direction only when its subject, entity and effective date cover the issue being analysed.

Questions and answers

What is the purpose of Section 24?

Denominations of notes: Section 24 governs denominations of bank notes and provides the statutory framework for the denominations that may be issued and for discontinuing or restricting denominations by Central Government action on RBI recommendation where the Act so provides.

Which statutory limb should be checked first?

Rule 1 - The section is about denomination authority, not about demonetisation of an already issued series

What is the next legal boundary?

Rule 2 - legal-tender cessation is separately dealt with in Sections 26 and 26A.

What record should support the conclusion?

Section 24 file evidence: For currency advice, distinguish 'denomination permitted to be issued' from 'particular series/denomination ceasing to be legal tender'.

Primary sources

Source control for Section 24: use the official consolidated RBI Act for the statutory text and footnotes, then separately reconcile any post-Finance Act 2022 amendment, commencement notification or RBI instrument relevant to the event date.