Many have wondered what happens to the millions of old bank notes of Rs 500 and Rs 1,000 that have been withdrawn by the government from circulation. Prime Minister Narendra Modi’s decision to demonetise the high-value currency notes on November 8 was aimed at rooting out black money and ending corruption in the country. A Bloomberg report had said that as many as 23 billion notes in denominations of Rs 500 and Rs 1000 are expected to be received by banks across the country. Besides burning the notes, the central bank has options to dump them in landfills or use them as briquettes in industrial plans.
An NDTV report said the Reserve Bank’s Kerala unit has found a way to recycle the bank notes by sending them a hardboard-making factory in the state’s northern district of Kannur. The report says the factory, which gets the bank notes in shredded form, turns them into pulp and combines it with wood pulp to make the hardboards.
“Previously RBI was just burning it and now we are able to use. We have to be careful about the percentage of the pulp from old currencies we use. If we get that wrong, the end-product will be a waste,” PM Sudhakaran Nair, general manager of the factory was quoted saying by NDTV.