Revealed! Modi govt spends this much amount to print new Rs 500 and Rs 2000 notes

The government recently revealed the amount it spends in printing new Rs 500 and Rs 2000 currency notes. Check details here

The government on Wednesday said it costs between Rs 2.87 and Rs 3.77 to print each currency note of Rs 500 and Rs 2,000, but did not indicate the total cost involved in replacing the junk notes.

The approximate cost of printing each note of new Rs 500 is in the range of Rs 2.87 to Rs 3.09, and Rs 3.54 to Rs 3.77 for Rs 2000, Minister of State for Finance Arjun Ram Meghwal said in a written reply in Rajya Sabha. “It is too early to indicate the total cost of printing of new notes of Rs 500 and Rs 2000, as they are still being printed,” he said.

He was responding to a question asked on printing cost of each piece of new Rs 500 and Rs 2,000 note. New notes are being printed continuously to fulfil the needs of the public, he said. India’s currency in circulation was Rs 11.64 lakh crore as on February 24, 2017.

After demonetisation of old Rs 500/1000 bank notes, RBI currency chests had received an amount of Rs 12.44 lakh crore in the form of these junked notes as of December 10, 2016.

The process of verification of returned notes for counterfeit notes and accounting reconciliation is still on, he added.

The Reserve Bank of India procures papers for printing new currency notes of Rs 2000 and Rs 500 from existing suppliers, Meghwal said in reply to a separate question.

“It has also been agreed by all suppliers that the Indian specific banknote paper will not be supplied to any other party,” he added. A clause about “Secrecy and Exclusivity” has been included in the agreement, the minister said.

Asked about recalibration of ATMs and banks, Meghwal said out of total 2.18 lakh ATMs across the country, around 1.98 lakh have been recalibrated as on January 4, 2017. The original equipment manufacturers (OEMs) are working with the respective banks to recalibrate remaining ATMs, he said.

When asked about complaints regarding non-functioning of ATMs post demonetisation, the minister said they have been taken up immediately with the banks concerned for appropriate resolution.