As it is known, Lari is the sole legal tender on the territory of Georgia except for the cases envisaged by the Law of Georgia on Free Industrial Zones. Only the NBG is authorized to issue banknotes on the territory of Georgia. NBG also has the exclusive right to produce commemorative coins for circulation or for some other purpose.  

The NBG board determines and approves the design, composition and other features of the Lari banknotes and coins (Tetri) after which the process of printing banknotes and minting coins starts. Georgian banknotes are printed in leading European mints. 

The NBG provides the transportation of finished banknotes and coins on the territory of Georgia and their subsequent storage in the NBG vaults. The banknotes and coins are supplied to the population through commercial banks.

After putting banknotes and coins into circulation, the natural process of their wearing out starts, which ultimately makes them unfit for circulation. The average lifecycle of banknotes fluctuates between 1 and 5 years depending on the peculiarities of use of a particular denomination. The coins are much more durable. The NBG regularly withdraws banknotes and coins from circulation and replaces them with relevant amounts of new coins and banknotes. Unfit banknotes are destroyed in line with the rules established by the NBG Board.
 
The NBG represents the main expert in the national and foreign currencies in circulation on the territory of Georgia. It regularly withdraws fake and counterfeit banknotes from circulation.  No compensation is made for the fake and counterfeit banknotes withdrawn.

Besides being authorized to issue banknotes in circulation, the legislation also authorizes the NBG to emit numismatic commemorative and investment coins.