Printing Each New Rs 500/2,000 Note Costs Rs 2.87 to Rs 3.77: Govt

I was crestfallen as a fake Rs 2,000 note amounts to a shock tax on my monthly income, a tax that I cannot afford.

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, but did not indicate the total cost involved in replacing the junk notes.

The approximate cost of printing each note of new Rs 500 is in the range of Rs 2.87 to Rs 3.09, and Rs 3.54 to Rs 3.77 for Rs 2000, Minister of State for Finance, Arjun Ram Meghwal, said in a written reply in 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.

Also Read: Modi’s Clueless Aides Are the Villains, Not the New Currency Notes

India's currency in circulation was Rs 11.64 lakh crore as on 24 February 2017, he said.

After demonetisation of old Rs 500/1000 bank notes, RBI currency chests had received an amount of Rs 12.44 lakh crore in the form of these junked notes, as of 10 December 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 2,000 and Rs 500 from existing suppliers, Meghwal said in reply 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.

A clause about "Secrecy and Exclusivity" has been included in the agreement, he added.

Also Read: Printing of Rs 100 Notes Stalled as Focus on Rs 2,000 and Rs 500

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

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

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

(With inputs from PTI)