RBI TO INSTALL 42 HIGH SPEED SYSTEM FOR SPEEDY WITHDRAWAL OF SOILED AND MUTILATED CURRENCY NOTES

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The Government has set up the objective of providing clean notes to the public and to ensure adequate supply of coins of various denominations in all parts of the country. This was stated by the Finance Secretary, Shri S. Narayan at the review meeting of the Currency Management System of the country in New Delhi today. The RBI Deputy Governor and senior officers from RBI and the Ministry attended the meeting.

RBI has installed 22 high speed Currency Verification and Processing Systems for speedy withdrawal of soiled and mutilated notes from circulation. These machines sort out soiled and mutilated notes and destroy them and also identify doubtful notes. 20 more of such machines were under installation in different RBI office. Shri Narayan laid emphasis on establishing an efficient system for distribution of coins so that people living in small towns and rural areas did not face any shortage of coins. In this context he commended the proposal of the RBI to engage the services of post offices, rural banks, cooperative institutions etc. for reaching the coins to far corners of the country. He assured that Government would empower the RBI in this behalf. It may be noted that the Government proposes to issue 60% more coins during 2003-04 as compared to the current year.

The RBI Deputy Governor said that 15 billion pieces of soiled notes had already been taken out of circulation and destroyed. RBI had also issued instructions to the commercial banks not to re-issue the old Ashoka Pillar series bank notes. He assured that RBI will make all efforts to implement the clean note policy.

A host of other relevant issues pertaining to Currency and Coinage were discussed including the possibility of issue of coins of Rs.10 denomination and supplying coins in packs of 100 pieces for facilitating distribution amongst the public.