Chapter III — Central Banking Functions

Section 39: Obligation to supply different forms of currency

Reviewed by CA Nikhil Gupta · Last reviewed 18 September 2026

Section 39 requires RBI, subject to specified conditions, to issue currency in the forms demanded—bank notes or rupee coin—through its offices/agencies and to make appropriate exchange arrangements.

Operative provisionOfficial sources mappedProvision-specific decode

Finin2min - Section 39 in 2 minutes

Legal effectSection 39 requires RBI, subject to specified conditions, to issue currency in the forms demanded—bank notes or rupee coin—through its offices/agencies and to make appropriate exchange arrangements.

Operative ruleThe section supports exchange between forms of legal currency but operates within practical/statutory conditions, denominations and agency arrangements.

Connected lawRead it with Sections 38 and 45 and current RBI currency-management procedures.

File evidenceFor a claim, identify the requested form/denomination, RBI office or appointed agency and any applicable operational restriction.

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.

Scope

Operative limb

The section supports exchange between forms of legal currency but operates within practical/statutory conditions, denominations and agency arrangements.

Legal boundary

Read it with Sections 38 and 45 and current RBI currency-management procedures.

Worked practical example

Facts. A customer cannot assume every branch must supply unlimited coin of a chosen denomination; the statutory obligation operates through the authorised RBI/agency framework.

Compliance points and common mistakes

Do not decide the issue from the heading alone. Map the facts to the operative words of Section 39 and to each relevant subsection, clause, proviso or explanation shown above.
Keep the statutory question separate from the operational overlay. Read it with Sections 38 and 45 and current RBI currency-management procedures.
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Where the provision is historical, omitted or repealed, state that status prominently and do not present it as a current compliance obligation.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 39 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 39?

Obligation to supply different forms of currency: Section 39 requires RBI, subject to specified conditions, to issue currency in the forms demanded—bank notes or rupee coin—through its offices/agencies and to make appropriate exchange arrangements.

Which statutory limb should be checked first?

Scope - Section 39 requires RBI, subject to specified conditions, to issue currency in the forms demanded—bank notes or rupee coin—through its offices/agencies and to make appropriate exchange arrangements.

What is the next legal boundary?

Operative limb - The section supports exchange between forms of legal currency but operates within practical/statutory conditions, denominations and agency arrangements.

What record should support the conclusion?

Section 39 file evidence: For a claim, identify the requested form/denomination, RBI office or appointed agency and any applicable operational restriction.

Primary sources

Source control for Section 39: 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.