The cases suggest that over the next four to five years, the RBI is slated for an extensive revamp of its currency management to ensure it meets the demand for cash in India’s growing economy. The measures embrace the creation of new currency management centers, computerization of warehousing, and improvement of security and observation mechanisms.
The modernization project, which the RBI plans based on an expression of interest (EOI), aims to enhance storage and handling capacities. The RBI’s analysis suggests that whereas Notes in Circulation (NIC) growth has already slowed down, its positivity is projected to remain intact, with volumes soaring from 136.
In March 2023, there were 21 billion pieces, and the number increased to 146. 87 billion pieces by the end of March of 2024. It may also be noted that Coins in Circulation (CIC) rose from 127. 92 billion to 132. 35 billion in the said period, while South America’s share increased to $17 billion during the same period.
In response, the RBI asserted that the higher the volume of these soiled notes, the more modernized they are in a bid to increase capacity and safety. Out of the four presses to print banknotes and four facilities to mint coins, the RBI ambitiously seeks to develop high technology to effectively and securely manage the money, besides ensuring that it adopts flexible policies that consider the interest of the environment. This is because central banks worldwide are strengthening their capacity to manage their local currencies.
