The Reserve Bank plans to comprehensively upgrade its currency management infrastructure over the next 4-5 years, primarily to ensure adequate storage and handling capacity to meet the future cash needs of the growing economy.
According to a report, the creation of new currency management centres, the introduction of warehouse automation, the installation of security and surveillance systems, an inventory management system and a centralised command centre are being considered to modernise the existing infrastructure. Reserve Bank of India document.
The expected timeframe for the entire project is 4-5 years, according to the expression of interest (EoI) issued by the Reserve Bank of India ( Reserve Bank of India ) for the procurement of consulting and project management services for the modernization of the monetary management infrastructure.
“Despite the moderation in the rate of growth of NICs (Banknotes in Circulation) over the past three years, the analysis indicates that growth will remain positive for the foreseeable future, although its pace is expected to slow over the next decade,” the document states.
The central bank also said the trend in volume growth is expected to continue, and the rate may even accelerate, so that the value needs of the public are sufficiently but conveniently met.
Banknotes in circulation (NIC), in terms of volume and value, have increased significantly over the past two decades. The volume of NIC stood at 136.21 billion pieces (bpc) as of March 31, 2023, and at 146.87 bpc as of March 31, 2024.
Coins in circulation (CIC) have also increased in terms of volume and value.
CIC volume stood at 127.92 tpcs as of March 31, 2023 and 132.35 tpcs as of March 31, 2024.
“In parallel with this growth, and in line with the Bank’s Clean Banknote Policy, the volume of dirty banknotes is also likely to continue to increase proportionally.
“Therefore, the current foreign exchange management infrastructure needs modernization to ensure adequate capabilities (taking into account future needs), optimization, as well as making the process safer and more environmentally friendly,” the statement said. Reserve Bank of India saying.
Banknotes are printed in four printing presses and coins are minted in four mints.
New banknotes and coins are received at nineteen Issuing Offices (IO) throughout the country, from where they are distributed to approximately 2,800 Currency Boxes (CC) operated by registered banks.
He Reserve Bank of India He said several central banks/monetary authorities have been facing multiple challenges in foreign exchange management due to the increase in the volume of banknotes printed, distributed, recovered and processed, as well as the rising costs and security risks associated with them.
To manage the increasing volume of banknotes, some central banks and monetary authorities have proactively modernized their foreign exchange management infrastructure by adopting appropriate re-engineering of their foreign exchange management processes and establishing separate facilities for banknote handling.
These countries include Austria, Egypt, France, Germany, Hungary, Indonesia, Japan, Malaysia and the United States.
He Reserve Bank of India According to the document, India is keen to modernise the currency management infrastructure (banknotes and coins) to create state-of-the-art storage and handling capacity suitable to meet the future cash needs of the economy, improving efficiency in currency management operations, ensuring the highest possible level of security while contributing to a greener planet.
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