RBI proposal: Rs 2000, Rs 500, Rs 200, Rs 100, other notes to get this makeover!
Banknotes in your wallet may soon get a makeover! However, not of the kind you might expect.
Banknotes in your wallet may soon get a makeover! However, not of the kind you might expect. The Reserve Bank of India (RBI) plans to varnish the bank notes so that their life could be extended. In its annual report 2017-18, RBI had proposed to introduce the varnished banknotes on a field trial basis. The idea has also been explored in other countries.
"In consultation with the Government of India, the Reserve Bank has been exploring the feasibility of increasing the life of Indian banknotes. International experience suggests that varnishing of banknotes is expected to increase their life and durability, reduce the banknote replacement requirements and thereby lower the overall security printing expenditure," the report said.
"It is proposed to introduce varnished banknotes on a field trial basis," it added.
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Introducing varnished bank notes was one of the agenda of the RBI and it found mention under the Currency Management chapter of RBI annual report 2016-17. The RBI's agenda for 2017-18 included, "procurement of Currency Verification and Processing System (CVPS)/Shredding and Briquetting Systems (SBS); introduction of new series banknotes in other denominations; procurement of security features; and introduction of varnished banknotes."
Media reports today cited sources as saying that a decision on introducing varnished new Rs 100 notes may be taken in the ongoing RBI Board of Directors' meeting today. Banks have recently started circulating lavender-coloured Rs 100 notes.
Varnishing will increase the life of currency notes.
Every year, the central bank has to dispose millions of soiled currency notes. In 2017-18, the RBI had disposed 27,878 million pieces of currency notes, this was up from 12,503 million in 2016-17 and 16,368 million in 2015-16, according to the RBI annual report.