What is happening with the old 500 and 1000 rupee notes which had been demonetized in India? This saga was initiated when the RTI, through PTI Correspondent, wrote a letter to the Reserve Bank of India requested an answer on what the Bank is doing with those notes of five hundred and one thousand rupees.
The RBI took the initiative to answer that question most appropriately. The answer was so simple. They confirmed that here was shredding and briquetting of those two denomination value notes. The notes are later disposed of by the means of the tender process.
The estimation value for these old rupee notes of five hundred and one thousand is believed to be fifteen point two eight (15.28) trillion. That was the report from the Central bank of India.
The Reserve bank of India has said earlier on, that these old notes of 500 and 1000 rupees are being counted then processed through some well knowledgeable and experienced system of a currency processing and verification.
Those old notes are then shredded and eventually briquettes in the appropriate systems which are believed to be installed in numerous offices of Reserve Bank of India. The Reserve Bank of India also confirmed that the bank does not in any way recycle
any notes which have been processed. They went further to explain what happens with such notes after being processed. After the compression of those shredded notes into bricks, they are disposed of by tendering processes.
Research and statistics show that there are about fifty-nine machines that deal with the currency verification and processing that are actively used in various offices and branches of Reserve Bank of India. These offices are situated all over the
country for efficiency and effectiveness processing. The bank ensures that these notes are processed with accuracy in genuineness and arithmetic.
The Reserve Bank of India said that ninety-nine percent of these old notes of five hundred and one thousand rupees had already returned to the country’s banking system. This research was well illustrated through the Bank’s annual report for the financial year of 2016 and 2017.This annual report was released on August 30th, 2017.
Before that, on 8th of November 2016, the government of India had publicly banned the usage of these two denominations.Reports show that the government had allowed these currency holders to use these currencies in only some standard utilities and if not,
they were to deposit them with required banks. During this year, there was a circulation of 15.44 billion rupees of such old notes in the economy.
The Central bank has promised to do their best to make sure that these old notes are completely removed from circulating in the Indian economy.
What will happen next? Will the RBI manage to keep their promise?
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