New Delhi, November 9: The Reserve Bank of India (RBI) has reportedly decided to cut its order for printing currency notes in the current financial year due to a shortage of space in the currency chests. Even after 50-60 percent of the demonetised notes have been transferred from the chests to RBI post demonetisation, there is no space for the new ones in currency chests. This means that Rs 500 and Rs 1,000 notes which were deposited in banks post demonetisation has blocked most of the space in RBI vaults and currency chests.
The old notes that have been deposited can’t be scrapped as they are still being counted. In October, the RBI had informed that it checking the demonetised banknotes using a sophisticated currency verification system to increase the processing capacity. According to the latest RBI data, currency in circulation as of 13 October stood at Rs15.3 trillion, which is just 10% lower than a year ago.
As per a Mint report, the order to print currency notes for fiscal 2018 stands at 21 billion pieces of the currency against the 28 billion pieces in the previous year. It has to be noted that the average annual indent for banknotes over the past five years was 25 billion pieces. A senior executive with a private sector bank told Mint that there is very little space in currency chests and RBI vaults to keep the new notes. Reports state that post demonetisation, the Central Bank RBI had remonetised around 90 percent of the currency in the system.