Your scrapped currency may end up as paperboard

Unfit currency notes are destroyed by the Reserve Bank of India (RBI)

rahul

Rahul Dass | November 10, 2016 | New Delhi


#demonetistion   #RBI   #Rs500   #Rs1000   #Cashless Economy   #Black Money   #bank notes   #Corruption  

(Illustration: Ashish Asthana)

Now that the government has decided to scrap currency notes of Rs 500 and Rs 1,000 denomination, the millions of notes will end up as briquettes that can even be used for land fillings or for making items for use at office and home and paperboard.

What happens when the notes and coins return from circulation?


Notes and coins returned from circulation are deposited at the offices of the Reserve Bank. The Reserve Bank then separates the notes that are fit for reissue and those which are not fit for reissue. The notes which are fit for reissue are sent back in circulation and those which are unfit for reissue are destroyed after processing shredded. The same is the case with coins. The coins withdrawn are sent to the Mints for melting.

The Reserve Bank of India data reportedly shows that in terms of value currency notes of Rs 17.77 lakh crore was in circulation in India on October 28.

The country’s central bank improved its processes to deal with unfit notes in 2003 when then RBI governor Bimal Jalan inaugurated the Currency Verification and Processing System (CVPS) in Mumbai Office of the Reserve Bank of India.

The currency verification and processing systems have been installed in the Reserve Bank offices for faster and secured processing of soiled currency notes. Weeding out soiled currency notes and replacing them with fresh ones are part of the Clean Note Policy being followed by the Reserve Bank of India.

How are unfit notes dealt with?

Each CVPS is capable of processing 50,000 - 60,000 notes per hour. It counts, examines the genuiness of notes, sorts notes into fit and unfit and destroys the unfit notes on-line. The shreds are on-line transported to a separate briquetting system where they are compressed into briquettes of small size. The system is also environment-friendly, as it does not create pollution that was created by burning of notes in the past.

The briquettes can be used as residual fuel in industrial furnaces. They can even be used for land fillings or for making items for use at office and home and paperboard.

Apart from weeding out soiled notes from circulation, the Reserve Bank has also taken measures to supply adequate quantities of fresh notes and preventing excessive soilage of the existing currency notes.

 

Comments

 

Other News

Dying cultural expressions

Every year since 2000, February 21 is observed as International Mother Language Day by United Nations Educational, Scientific and Cultural Organisation (UNESCO). It is to celebrate linguistic and cultural diversity, and multilingualism.

Need for state laws for compulsory registration of marriages

Indian women marrying NRIs, glamorous though it sounds, has recently become a cause of serious concern. The reason for this is the alarmingly high rates of desertion of women marrying NRIs, said a blog posted on the Niti Aayog website.    The blog ‘NRI: Non Reliabl

The rot at the top

CBI is supposed to be the last resort to catch the corrupt after all other options have not yielded the desired result. But, who will now tackle corruption now that two of the former top officials of the premier investigating agency are themselves facing charges.   India is s

Demonetisation is short-term challenges for long-term gains: Usha Ananthasubramanian

Post demonetisation, what are the challenges faced by banks? Post demonetisation, the major challenges are retention of CASA [current account, savings account] deposits, deployment of these funds, impact of spurt/decline in low-cost deposits on MCLR [marginal cost of fund

Universal Basic Income: The way forward

9.44 The irresistible force of even as powerful an idea as UBI will run into the immovable object of a resistant, pesky reality. So, what is the way forward, always remembering that the yardstick for assessment is not whether UBI can be perfect or faultless but only whether it can impr

Should action be taken against hospitals which have hiked the heart surgery cost?

Should action be taken against hospitals which have hiked the heart surgery cost?

Video

जल्द आएंगे 1000 रुपये के नए नोट
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter