Revealed: The Cost Of Printing New 500, 2,000 Rupee Notes

New Delhi: The government on Wednesday said it costs between Rs 2.87 and Rs 3.77 to print each currency note of Rs 500 and Rs 2,000. However, it did not indicate the total cost involved in replacing the junk notes. The approximate cost of printing each new note of Rs 500 denomination is in the range of Rs 2.87 to Rs 3.09, and Rs 3.54 to Rs 3.77 for Rs 2,000, Minister of State for Finance Arjun Ram Meghwal said in a written reply in the Rajya Sabha.

"It is too early to indicate the total cost of printing of new notes of Rs 500 and Rs 2000, as they are still being printed," Mr Meghwal said. He was responding to a question on printing cost of each piece of new Rs 500 and Rs 2,000 notes.

New notes are being printed continuously to fulfil the needs of the public, he said.

As of February 24, 2017, India's currency in circulation was Rs 11.64 lakh crore.

After demonetisation of old Rs 500 and Rs 1,000 bank notes, the Reserve Bank of India's currency chests had received an amount of Rs 12.44 lakh crore in the form of these junked notes as of December 10, 2016. The process of verification of returned notes for counterfeit notes and accounting reconciliation is still on, he added.

The Reserve Bank of India procures papers for printing new currency notes of Rs 500 and Rs 2,000 from existing suppliers, Mr Meghwal said in response to a separate question.

"It has also been agreed by all suppliers that the Indian specific banknote paper will not be supplied to any other party," he added.

A clause about "Secrecy and Exclusivity" has been included in the agreement, the minister said.

Asked about recalibration of ATMs and banks, Mr Meghwal said that out of total 2.18 lakh ATMs across the country, around 1.98 lakh have been recalibrated as on January 4, 2017.

The original equipment manufacturers (OEMs) are working with the respective banks to recalibrate remaining ATMs, he said.

Asked about complaints regarding non-functioning of ATMs post-demonetisation, the minister said they have been taken up immediately with the banks concerned for appropriate resolution.

The government had on November 8 last year announced its decision to junk Rs 500 and Rs 1,000 notes, taking out 86 per cent of currency in circulation.