How Will RBI Dispose Old Rs 500 and Rs 1,000 Notes (Download PDF)

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About 86 percent of the Rs 17.77 lakh crore in circulation till March 31st this year was in the form of Rs. 500 and Rs. 1000 currency note.9026.6 crore bank notes were in circulation across the country in terms of volume until March 31st. Around 24 percent or 2,203 crore notes were of Rs. 500 and Rs. 1000.

Converted to briquettes weighing about 100 grams

Converted to Briquettes Weighing About 100 Grams

Converted to briquettes weighing about 100 grams

Highlights

  • RBI will dispose of the discarded currency notes of Rs 500 and Rs 1,000.
  • Old notes converted into briquettes (compressed bundle) weighing 100 grams each.
  • 2,203 crore currency notes to be destroyed or recycled by the RBI.

WHAT IS CVPS (Currency Verification and Processing System)?

  • RBI Governor Bimal Jalan introduced this system for quicker secured processing of soiled notes.
  • Each installation can process up to 60,000 currency notes in an hour.
  • Counting and checking genuineness- it divides currency into fit and unfit categories.
  • Unfit currency is destroyed by shredding, fit currency is cut to be recycled to produce new currency notes.

How Will the Notes Be Disposed?

  • After shredding, they will be converted to briquettes weighing about 100 grams, to be sold for industrial use.
  • Recycled into products like paperweights, calendars and files.

- Published/Last Modified on: November 16, 2016

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