November 14, 2017

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RBI cuts down on printing new notes due to shortage of space in currency chests.

RBI recently brought down the order for printing new currency notes to 21 billion for the year 2017-2018. This is not only less than last year’s order of 28 billion, but is also the lowest in the last five years. The main reason for this cut down is the lack of storage space available with the central and commercial banks, as their currency chests are still filled with loads of old currency notes.

On an average, the printing order by RBI for the currency has been for 25 billion, which has been brought down for the upcoming year by 4 billion. According to sources, a large amount of space in RBI vaults is still occupied by notes that no longer account as legal tender, but need to be counted before they can be destroyed for freeing the space.

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According to a PTI report, RBI is making use of a sophisticated mechanism for processing the notes, majority of which have been processed, but there are still some left. The amount of notes that have been processed goes into trillions.

Printing of new notes is not just lower than the required amount, but also lesser than what is needed to do away with all the soiled notes in circulation. 


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