Lok Sabha Question No. 554 (UNSTARRED), answered on 2023-07-24
Subject: Printing and Circulation of New Currency
Ministry: FINANCE
Asked by: C.N. Annadurai, Arvind Ganpat Sawant, Manish Tewari, Sajda Ahmed, Dhanush M Kumar, Omprakash Bhupalsinh alias Pawan Rajenimbalkar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO.554

TO BE ANSWERED ON 24/07/2023

## PRINTING AND CIRCULATION OF NEW CURRENCY

554. SHRI C.N. ANNADURAI: SHRI ARVIND GANPAT SAWANT: SHRI MANISH TEWARI: SHRIMATI SAJDA AHMED: SHRI DHANUSH M. KUMAR:

SHRI OMPRAKASH BHUPALSINH ALIAS PAWAN RAJENIMBALKAR:

Will the Minister of FINANCE be pleased to state:-

- (a) the criteria followed for printing and circulation of new currency notes with new design and denomination;
- (b)  whether there  is  any  scheme  to  attach  microchips  to  high  denomination  currency  notes and if so, the details thereof;
- (c) the number of currency notes of Rs. 500 denomination printed during 2016-17 along with total cost thereof;
- (d)  whether  three  Government  mints  situated  in  Bengaluru,  Nashik  and  Dewas  printed 8810.65 million notes of Rs. 500 denomination but the RBI received only 7260 million notes, if so, the details thereof and the reasons for the mismatch along with the cost of such notes which were not submitted to RBI;
- (e)  whether  the  Government  has  enquired  into  the  matter  and  if  so,  the  outcome  of  the enquiry;
- (f) whether the Government has collaborated with the Reserve Bank of India (RBI) and other relevant authorities to assess the potential security risks posed by the disappearance of such a substantial value of currency notes, if so, the details thereof; and
- (g) the corrective steps taken/being taken by the Government to ensure that such lapse does not occur again?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  In terms of the section 25 of the Reserve Bank of India Act, 1934, the design, form and material  of  bank  notes  shall  be  such  as  may  be  approved  by  the  Central  Government  after consideration of the recommendations made by the Central Board of RBI. The design of the bank notes and new security features primarily are introduced to make counterfeiting difficult and  to  stay  ahead  of  counterfeiters.  Accordingly,  RBI  in  consultation  with  Government  of India,  reviews  the  design  and  security  features  of  Indian  banknotes  from  time  to  time  and introduces banknotes with new design and security features.

(b) No, Sir.

(c) & (d) As per RBI, the total number of banknotes of ₹500 denomination (old and new MG series) supplied by the presses of SPMCIL and BRBNMPL to RBI in year 2016-17 is 9273 million  pieces.  RBI  vide  Press  Release  dated  17.06.2023  (https://www.rbi.org.in/Scripts/ BS\_PressReleaseDisplay.aspx?prid=55878)  has  informed  that  all  banknotes  supplied  from printing presses to RBI are properly accounted for. Further, there are robust systems in place for  reconciliation  of  banknotes  printed  at  the  presses  and  supplied  to  RBI  which  include protocols to monitor production, storage and distribution of banknotes.

(e) to (g) In view of reply (c) & (d) above, the question does not arise.

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