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

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About 86 percent of the ₹ 17.77 lakh crore in circulation till March 31st this year was in the form of ₹ 500 and ₹ 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 ₹ 500 and ₹ 1000.

Converted to Briquettes Weighing About 100 Grams

Highlights

  • RBI will dispose of the discarded currency notes of ₹ 500 and ₹ 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

Economy

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