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Printing presses to RBI: Pay us Rs 577 cr for note-ban loss

The Rs 577-crore bill is largely on account of huge consignments of imported/indigenous currency note paper used for Rs 1,000 and Rs 500 denominations as well as consignments which had been previously ordered or were in the process of being shipped to India.

Written by Ritu Sarin | New Delhi | Updated: September 6, 2017 8:32 am
Demonetisation, RBI, Printing presses, Note ban loss, Demonetisation to remonetisation, 2000 new notes There are four currency printing presses and the calculation sent to the RBI is the tally of losses and wastage incurred collectively by them. (File Photo)

The government’s currency paper printing presses have asked the Reserve Bank of India (RBI) for compensation or reimbursement to the tune of Rs 577 crore for what they estimate was the loss and wastage they had to incur due to the November 8, 2016 announcement of demonetisation of Rs 1,000 and Rs 500 currency notes.

This adds another dimension to the demonetisation woes of the RBI which has, in its recently released annual report, admitted to lower profits and to paying the government a reduced annual dividend on account of it. Top government officials and officials in the currency paper printing establishment told The Indian Express that the matter was under discussion and since the printing presses were captive units — they do no commercial work — the losses they incurred on account of demonetisation would surely have to be offset.

The Rs 577-crore bill is largely on account of huge consignments of imported/indigenous currency note paper used for Rs 1,000 and Rs 500 denominations as well as consignments which had been previously ordered or were in the process of being shipped to India. Besides this, the printing presses are understood to have added cost of wasted ink and other materials used specifically for these denominations as well as the wasted cost of printing the sizeable stocks of currency notes lying in their establishments or being packed and transported — all being described as “work in progress” at the time of the dramatic announcement of demonetisation.

There are four currency printing presses and the calculation sent to the RBI is the tally of losses and wastage incurred collectively by them. There are two currency presses of the Public Sector Security Printing & Minting Corporation of India Ltd (SPMCIL) which operates printing presses in Nashik and Dewas and two of the Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL) which is a RBI subsidiary and operates printing presses at Mysore and Salboni, West Bengal.

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    Bill Poser
    Sep 10, 2017 at 6:29 am
    I don't understand why there is a problem with bank notes yet to be printed. The 500 rupee note was not eliminated. The current series was demonetised, but a new note is replacing it. Can't the existing stocks of paper, and the paper on order, be used to print the new notes rather than the old ones? The old series notes that had been printed but that will not be circulated are indeed wastage, but the paper that has not yet been used should not be.
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    1. P
      P Shanmugam
      Sep 6, 2017 at 10:56 pm
      The present government has completely acted without any rational thinking when it introduced demonetisation last year in November.On account of which the poor people,small businessmen and middle class had to suffer.Simply a case of wasteful expenditure and harassment of people.-P Shanmugam
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        Rocky77
        Sep 6, 2017 at 10:12 pm
        Sorry Mr. Choubay i was referring to mr subhash...
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          Rocky77
          Sep 6, 2017 at 10:11 pm
          Mr. Choubay do you know that the demonetisation scheme has failed in its purpose. Find it out. Ur BUSINESS REVOLUTION has gone into khadda...
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            RAHUL CHOUBEY
            Sep 6, 2017 at 2:02 pm
            . . the govt failed . . and bhakts love modi more den INDIA . . the desisions taken by the finance ministry hrough its course has resulted in destroying the indian economy . . ask any small shopkeeper or buisnessman anyone that did their buisness suffered coz of demonitisation .. the answer will tell everything . .
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