What will happen to the withdrawn demonetised currency notes?

November 12, 2016, 11:36 am
What will happen to the withdrawn demonetised currency notes?
BUSINESS NEWS
BUSINESS NEWS
What will happen to the withdrawn demonetised currency notes?

What will happen to the withdrawn demonetised currency notes?

The Reserve Bank of India (RBI), the supreme body controlling the monetary funds flowing through the country is preparing to destroy the withdrawn notes of Rs 500 and Rs 1,000, which are no longer valid. .These notes are now nothing but mere printed papers, but the withdrawn notes will not go to waste. "We are well prepared," said a source working with the banking regulator, adding that all such currency notes will be mangled.

“They are shredded to the extent that they can no longer be reconstructed. Then it passes through a humidifier to convert into briquettes. We give them away to contractors who mostly use them for land filling,” said the source. 

According to monetary reports, by the end of March, 2016 there were 15,707 million Rs 500 notes in circulation and 6,326 million Rs.1,000 notes.

Methods adopted by the Central banks to destroy outdated currency notes vary from country to country including the burning of notes to heat the buildings. Bank of England followed this method of mutilation till 1990, burning the currency and using the energy generated to warm the Bank.

Later in the early 2000s, the bank decided to change their desecration procedure by recycling the notes using a composting treatment (as used in the treatment of food waste) and used it as a manure for agriculture.