RBI Using Sophisticated Machines To Tally Demonetised Notes

Posted By: Religare
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The Reserve Bank of India (RBI) has refuted reports of it not using 'counting machines' for tallying the total number of demonetised notes of Rs 500 and Rs. 1,000 in any of its offices, saying that Currency Verification and Processing (CVPS) machines are being used by the central bank for checking the numerical accuracy and genuineness of the currency notes, including Specified Bank Notes (SBNs).

RBI Using Sophisticated Machines To Tally Demonetised Notes
"It has been reported in a section of the press, quoting a reply to RTI application, that RBI was not using machines for counting Specified Bank Notes (SBNs). RBI actually uses sophisticated Currency Verification & Processing (CVPS) machines for checking the numerical accuracy and genuineness of the currency notes, including SBNs," said RBI in a statement.

"These machines are way superior to the note counting machines. With a view to augmenting processing capacity, RBI is using the available machines in two shifts and has been using some machines temporarily drawn from commercial banks after suitable modifications," the statement added.

The RBI further said that it is also exploring other options to further augment the processing capacity.

Earlier, it was reported that the central bank, in a reply to an RTI, had said 'counting machines' were "not being used" in RBI offices for the old scrapped notes.

It was also reported that the RBI had also refused to give the total number of personnel deployed for counting of the scrapped notes, saying compiling the information would "disproportionately divert" its resources.

The RBI, in its annual report, earlier this month highlighted that about 89 million notes of Rs. 1000 rupee currency did not come back to the system out of a total of 6700 million notes that were in the system as on November 8.

The apex banking system stated that only 1.3 percent of Rs. 1000 notes didn't return after the Centre's demonetisation exercise.

RBI, in its report, said that the cost of printing notes doubled to Rs. 7,965 crore in FY17 from Rs. 3,421 crore in FY16 on account of new currency printing after the note ban.

However, RBI said that it pumped in 2380 crore notes totalling Rs 5.54 lakh crore in the two months post demonetisation between November 9 to Decemeber 31.

On November 8 last year, the Prime Minister Narendra Modi-led government announced its demonetisation drive, wherein, currency denominations of Rs. 500 and Rs. 1,000 notes were stopped as legal tender.

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