From denominations as small as Rs 10 or 20 to bigger ones like Rs 500 and Rs 2,000, have you ever wondered how the RBI creates these currency notes, and what are they made of? How are they distributed all over the country? Read on as we unfold the same!
Well, as per the RBI website itself,?bank notes are printed at four currency presses, two of which are owned by the government through its corporation, Security Printing and Minting Corporation of India Ltd. (SPMCIL), and the other two are owned by the RBI through its wholly-owned subsidiary, Bharatiya Reserve Bank Note Mudran Private Ltd. (BRBNMPL).?
The currency presses of SPMCIL are at Nasik and Dewas. The two presses of BRBNMPL are at Mysuru and Salboni, as per RBI.
And what are the banknotes made of? As per the RBI, the paper currently being used for printing banknotes in India is made using 100% cotton.
Also Read:?5 Years On Since Demonetization, Here's What Happened To The Old 500 & 1000 Rupee Notes
As far as distribution is concerned, RBI presently manages the currency operations through its 19 Issue Offices located at various locations.
These offices receive fresh banknotes from the currency printing presses which in turn send fresh banknote remittances to the currency chests. Direct remittances by the presses to the currency chests also happen. These RBI offices also offer the facility to members of the public to exchange their notes, including soiled and mutilated notes.
Further, a wide network of currency chests maintained and managed by scheduled banks are part of currency management architecture. The Issue Offices receive fresh banknotes from the currency printing presses which in turn send fresh banknote remittances to the currency chests. Direct remittances by the presses to the currency chests also happen.
RBI has authorised select scheduled banks to establish currency chests. These are storehouses where banknotes are stocked on behalf of the RBI for distribution to bank branches in their area of operation. The currency chests are expected to distribute banknotes to other bank branches in their area of operation. The bank branches receive the banknotes from the Currency Chests for further distribution among the public.
As of March 31, 2021, there were 3,054 currency chests, as per the RBI website.
Also Read:?Digital Rupee Can Kill The Case For Cryptos Like Bitcoin, Says RBI Deputy Governor
For interesting financial news, keep reading Indiatimes Worth.?Click here.