The Reserve Bank of India (RBI) is soon going to introduce, varnished currency notes of Rs 100 for denomination on field trial basis. The statement was made by the central bank in its annual report for 2018-19. Varnished notes help to increase the life of currency notes.
In the previous year, it incurred an expenditure of Rs 4,811 crore on security printing during July 1, 2018 to June 30, 2019 as compared to Rs 4,912 crore, RBI said. According to the annual report of 2017-18, the RBI has noted that it was exploring the feasibility of increasing the life of Indian banknotes.
“International experience suggests that varnishing of banknotes is expected to increase their life and durability, reduce the banknote replacement requirements and thereby lower the overall security printing expenditure,” the RBI said. In volume terms, Rs 10 and Rs 100 banknotes constituted 47.2 per cent of total banknotes in circulation at end-March 2019 as against 51.6 per cent at end-March 2018.
The RBI also mentioned that the value and volume of banknotes in circulation increased by 17 per cent and 6.2 per cent to Rs 21.1 lakh crore and 10,875.9 crore pieces, respectively, during 2018-19. In value terms, the share of Rs 500 and Rs 2000 currency notes, which had together accounted for 80.2 per cent of the total value of banknotes in circulation at end-March 2018, increased to 82.2 per cent at end-March 2019. Over the year, Suddenly increase in the value of Rs 500 banknotes in circulation from 42.9 per cent to 51 per cent.
RBI will develop a mechanism/device for aiding the visually impaired in the identification of denomination of banknotes, said RBI as per annual report 2018-19.