RBI to Establish First Automated Banknote Processing Center in Jaipur
The Reserve Bank of India will set up its first Automated Ticket Processing Center (ABPC) in Jaipur for the storage, reception and dispatch of banknotes. The decision was taken to effectively combat the growing circulation of banknotes.
The RBI document said cash remains an important form of payment for most Indian citizens, despite the growth of digital payments. In fact, banknotes in circulation have been steadily increasing with the increase in digital payments. In addition to this, the global trend of increasing the volume of banknotes in circulation has also been observed in India.
This observed increase in the volume of currency has forced the umbrella bank to rethink the current cash management system and a need arises to automate the processing of banknotes for receipt, storage, processing and destruction with use. of modern technology.
Automated banknote processing center: key functions
â¢The main functions of the proposed automated banknote processing center will include the automated storage and receipt of fresh banknotes from printing presses and the automated collection and dispatch of banknotes to issuing offices or cash registers. identified currencies.
â¢The center will also facilitate the storage, processing and destruction of soiled banknotes to and from identified bank branches and exchange offices (CCs) covering the jurisdiction of the states served.
â¢It will be designed to store the average daily requirement for fresh banknotes and maintain approximately 15 days’ stock of soiled banknotes and provide commensurate processing and destruction capacities.
The RBI has forecast storage capacity requirements for the ABPC, which includes a daily average of fresh banknote inventory of 1,883 million coins in 2024-25, 2,950 million coins in 2029-30 and 6,853 million coins. parts in 2039-40.
The center is also expected to store around 7,718 million soiled banknotes in 2024-25, 11,568 million banknotes in 2029-30 and 27,757 million banknotes in 2039-40.
The volume of banknotes in circulation almost tripled from March 2001 to March 2019 and is expected to increase further in the years to come. The supply of banknotes by the presses also increased by about four times from March 2001 to March 2019 and is expected to increase.
What are currency safes?
Currency safes are bank note warehouses and the banknotes stored there are distributed to various bank branches or a network of ATMs for distribution to the public. However, unsuitable banknotes taken out of circulation are checked through a Currency Verification and Processing System (CVPS) and destroyed by shredding.
The Reserve Bank of India is the sole issuer of banknotes in the country. The apex bank is responsible for the management of the currency and all its aspects. Overall, the bank is supplied with notes from four printing presses and coins from four currencies.
The new banknotes and coins are sent to 19 RBI issuing offices across the country and from there the banknotes are then distributed to around 3,000 currency vaults operated by regular banks under a deal. agency with the RBI.