No Change in Cost of Printing New Notes for RBI

Demonetization has put a lasting impact on the public, the country and the Benchmark Index Nifty. It was on 8^th November when our honorable Prime Minister Narendra Modi announced that the Rs. 500 note and Rs. 1000 note will no longer be the legal tender. Nifty share price lost almost 6 per cent from 8543.55 on November 8^th to 8061.30 on 21^st December. The one thing that remained unchanged is the printing prices of the new Rs. 500 rote and the Rs. 2000 notes.

Cost of printing the New Notes:

The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), which prints currency notes, has said that the new Rs 500 note costs Rs 3.09 to print, while the magenta 2,000 rupee note costs Rs 3.54.

BRBNMPL, a wholly owned subsidiary of the Reserve Bank of India or RBI, declared in its reply to a Right to Information (RTI) query that it amounts the central bank Rs 3,090 for printing 1,000 notes of Rs 500, the same as it did for the old Rs 500 note that was eliminated along with 1000 rupee notes last month.

For the Rs 2,000 denomination, RBI spends Rs 3,540 for 1,000 pieces, the same rate as that for the demonetized Rs 1,000 note.  On Monday the central bank said it is issuing a new batch of Rs 500 notes in the Mahatma Gandhi (New) series with the inset letter ‘R’ in both the number panels.

RBI said in a notification that in continuation of issuing of Rs 500 denomination bank notes in Mahatma Gandhi (new) series which are currently legal tender, a new lot of bank notes with inset letter ‘R’ in both the number panels, bearing the signature of Dr Urjit R Patel Governor, Reserve Bank of India, with the year of printing ’2016′ are being issued. The Reserve Bank also said it will soon issue Rs 50 denomination notes in the Mahatma Gandhi Series-2005, with the letters ‘R’ and ‘L’ inserted both the number panels. It also said that these Rs. 50 bank notes have the ascending size of numerals in the number panels; the bank notes are similar to those of Rs 50 issued earlier in Mahatma Gandhi Series-2005. 

Prime Minister Narendra Modi had pronounced the ban on 500 and 1000 rupee notes on November 8 in a move intended at eliminating money laundering and black or untaxed money. It washed out 86 per cent of the money in flow worth Rs 15.44 lakh crore.The government has so far reinstated about 6 lakh crore in new currency.