The result of the ban on currency in India is that the banks have started stacking old notes. Now the central bank is planning to hunt down these old notes.
Old notes of Rs 500 and thousand rupees are being deposited in Indian banks. On November 8, Prime Minister Narendra Modi had announced the closure of notes of 500 and thousand rupees suddenly. The people were given less than two months time to change the old notes that were kept by them. So people started working on changing the notes in the banks with full force. The result is that banks have started stacking old notes. Now the central bank is planning to destroy these old notes. After this ban on currency people want to know “can I exchange old notes now”. This is usual questions which come to mind of most of the people.
What RBI doing with old currency
According to an estimate, banks collected 22 billion notes which will be garbage only. If one of these notes is applied to one heap, then the height of that stack will be 300 times higher than the Everest. Actually, before November 8, 90 billion notes were in circulation in India. According to the Reserve Bank of India, the notes of 500 and 1000 rupees were 86 percent.
RBI officials have said that 22 billion notes will be treated as garbage. This means that these will be just pieces of paper. They will be cut from the machine and converted to the size of the bricks. Generally, such bricks made from paper can be used in factories but this will not be done with old notes. RBI spokesman AlpanaKilawala said, “These bricks will be made of paper of note, they will be very fragile and no work will come, so they will be suppressed under the soil.
RBI officials say that dealing with this heap of old notes will not be a big deal. Kilova said, “The bank will not have any problem in destroying these notes because we have enough machines.” In 2015 and 2016, the RBI has destroyed 16.4 billion notes. RBI old notes are not a big issue for the RBI bank.
After China, most notes are printed in India. It is also because most of the work in India is in cash only. Different countries used different techniques for destroying old and currency notes. By the year 1990, the Bank of England would burn its old notes and then that summer the bank’s building was kept warm. Later, the work of making fertilization started by recycling those notes.
In 2012, the central bank of Hungary burned its old notes and warmed the homes of some needy people. The bank had made brick bricks with old notes and sent them to human services institutions to give it to the needy.
If you want to know more about what bank will do with these notes then read the old note exchange latest news.
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