New Delhi, Aug 31: The Reserve Bank of India (RBI) spent too much high amount of Rs 7,965 crore as compare to Rs 3,421 crore in the past one year to print new currency notes.
With the hike of 133 per cent, government explained the reason, due to change in designing of notes new printing presses were introduced and to fulfill the larger volume of notes.
“Furthermore, in order to ensure availability of banknotes across the country at the shortest possible time subsequent to the demonetisation, banknotes had to be frequently air-lifted from the presses to the issue offices of the Reserve Bank as well as directly to currency chests wherever feasible, which partly contributed to the increase in the cost of distribution of banknotes,” the RBI said.
“In order to improve availability, direct remittances were increasingly sent to various currency chests from the printing presses. More than 100 direct remittances were sent to currency chests in various issue circles,” the RBI added.
Banks managed the currency chests to make inter-circle diversions at their discretion to even out cash availability. Reimbursement of cost for finished banknotes, work in progress, raw materials, etc. as the printing presses had to discontinue printing of Rs 500 and Rs 1,000 denomination banknotes which also increased the price.
The total supply of notes was 3.5 per cent higher than the indent placed with the printing presses for 2016-17, while the indent itself was higher by around 17.4 per cent than that of the previous year, the RBI said.
As the amount spend on printing presses, the total expenditure of the Reserve Bank increased by 107.84 per cent, from Rs 14,990 crore in 2015-16 to Rs 31,155 crore in 2016-17.
RBI claims, the total supply of notes during the year was 37 per cent high at 29,043 million pieces from 21,195 million pieces with the higher denomination notes of 13,702 million pieces as against 5,268 million pieces, the RBI said.