What is RBI doing with old Rs. 500/1,000 notes?
The demonetized Indian currency notes of denomination Rs. 500 and Rs. 1,000 are being shredded and briquetted before being disposed of through a tendering process, explained the Reserve Bank of India (RBI) in reply to an RTI query. The central bank had earlier estimated the value of old Rs. 500 and Rs. 1,000 notes received, as on June 30, 2017, at Rs. 15.28 trillion.
Old notes are shredded and briquetted
The old currency notes are counted and processed in sophisticated currency verification and processing system. The notes processed are shredded and briquetted in the shredding and briquetting system installed in various RBI offices, explained the central bank. Once compressed into bricks, the shredded notes are disposed of through a tendering process, according to the RTI reply. RBI doesn't recycle such processed notes.
At least 59 CVPS machines are processing demonetized notes
At least 59 sophisticated Currency Verification and Processing machines are in operation in various branches of RBI to process demonetized notes for their arithmetical accuracy and genuineness. The government had on November 8, 2016, banned the use of Rs. 500 and Rs. 1,000 notes and allowed the holders of these currency bills to deposit them with banks or use them at certain notified utilities.
99% of the demonetized notes had returned to banking system
In its annual report for 2016-17 released on August 30, 2017, the RBI said Rs. 15.28 lakh crore, or 99 percent of the demonetized notes, had returned to the banking system. The central bank said in the report that only Rs. 16,050 crore of the Rs. 15.44 lakh crore in old high denomination notes had not returned for the year ended June 30, 2017.
