RBI to set up automated banknote processing center in Jaipur


MUMBAI: In order to effectively cope with the increasing circulation of banknotes, the Reserve Bank of India (RBI) decided to set up an Automated Banknote Processing Center (ABPC) in Jaipur for receiving, storing and the dispatch of banknotes.
The functions of the ABPC will also include processing banknotes received from exchange offices (CCs) and bank branches, and destroying soiled banknotes in an automated manner, said the RBI’s Request for Proposal (RFP) for hiring a consultant for full consultancy services for the establishment of ABPC in Jaipur.
“Cash remains an important form of payment for most Indian citizens, despite the growth of digital payments. In fact, banknotes in circulation have increased along with the increase in digital payments. The global trend of increasing volume of banknotes in circulation has been in India as well, ”the document states.
The volume of banknotes in circulation tripled from March 2001 to March 2019 and is expected to increase further in the years to come.
In addition, the supply of banknotes by the press increased about four times from March 2001 to March 2019 and is expected to increase.
“This has required an overhaul of the current cash management system and there is a need to automate the processing of banknotes for receipt, storage, retrieval, processing and destruction, in line with global changes, adopting modern technology, ”the document said. .
One of the desired activities within the proposed ABPC would be the automated receipt and storage of fresh banknotes received from printing presses, automated retrieval and dispatch of fresh banknotes to issuing offices (IO ) / CC identified.
“The proposed ABPC should allow for the storage and shipping of fresh banknotes as well as the storage and handling of soiled banknotes to / from identified CCs / bank branches covering the jurisdiction of the states concerned,” the document said.
He also forecast the storage capacity requirements of the ABPC in Jaipur – fresh banknote stock (daily average) at 1,883 million coins in 2024-25, 2,950 million coins in 2029-30 and 6,853 million coins. coins in 2039-40, and banknotes soiled at 7,718 million coins in 2024-25, 11,568 million coins in 2029-30 and 27,757 million coins in 2039-40.
“The facility can be designed to store the average daily stock of fresh banknotes and keep around 15 days’ stock of soiled banknotes and provide proportional processing and destruction capabilities,” he said.
RBI is the sole issuer of banknotes in the country and responsible for the management of the currency and all its aspects.
RBI is supplied with notes from four printing presses and coins from four currencies. The new notes and coins are received at 19 bank issuing offices located across the country, from where they are then distributed to around 3,300 CCs operated by regular banks under an agency agreement with the RBI.
CCs act as warehouses and the currency stored there is distributed to various bank branches / ATM network for distribution to the public.
Unsuitable banknotes withdrawn from circulation are checked by a Currency Verification and Processing System (CVPS) and destroyed by shredding.

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