RBI confirms the Disposal Process of Demonetised notes

BE/RBI NOTE/10/2018

Demonetised Rs 500 and Rs 1,000 notes, were counted and processed for genuineness, are shredded and blocked, before being disposed of through a tendering process, the RBI has said.  Before this, RBI 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 currency notes included demonetised Rs 500 and Rs 1,000 notes and were counted and processed in sophisticated currency verification and processing system.  Once compressed into bricks’, the shredded notes are disposed of through a tendering process, the report added.  RBI adds that it does not recycle such processed notes.  At least 59 sophisticated Currency Verification and Processing (CVPS) machines are in operation in various branches of RBI across the country to process demonetised notes for their arithmetical accuracy and genuineness.

In its annual report for 2016-17 released on August 30 last year, the RBI added that:

  • Rs 15.28 lakh crore, or 99 per cent of the demonetised notes, had returned to the banking system.
  • In the report, for the year ended June 30, 2017, only Rs 16,050 crore of the Rs 15.44 lakh crore in old high denomination notes had not come back.
  • As on November 8, 2016, there were 1,716.5 crore pieces of Rs 500 and 685.8 crore pieces of Rs 1,000 notes in circulation, totalling Rs 15.44 lakh crore

Author: Admin Bankedge

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