‘Not correct’: RBI on reports of missing ₹500 notes from Indian economy
The Reserve Bank of India (RBI) on Saturday rejected the reports of “missing ₹500 notes” as incorrect and based on an “erroneous interpretation” of information collected from banknote printing presses under the Right to Information Act, 2005. The central bank clarified that all banknotes supplied from the printing presses to RBI are duly accounted for.
The RBI further emphasised that robust systems are in place to ensure the reconciliation of banknotes printed at the presses and their subsequent supply to the RBI. These systems include “strict protocols to monitor the production, storage, and distribution of banknotes.”
In light of these clarifications, the RBI has urged the public to rely on information published by the RBI periodically on such matters.
According to media reports cited by Live Mint, an activist named Manoranjan Roy filed a Right to Information Act (RTI), which allegedly revealed that ₹88,032.5 crore worth of ₹500 banknotes are missing from the Indian economy.
The RTI data claimed that the three mints had issued a total of 8,810.65 million pieces of the newly designed ₹500 notes. However, RBI only recorded receiving 7,260 million notes.
Specifically, the Currency Note Press in Nashik reportedly printed 375.450 million pieces of the new ₹500 notes between April 2015 and December 2016. However, the RBI’s records indicate only 345.000 million pieces. Among the missing notes, 210 million pieces were supposedly printed in the Nashik mint during April 2015 to March 2016, and according to the RTI, these notes were delivered to the RBI during Raghuram Rajan’s tenure as the governor.
In addition to filing an RTI request, activist Manoranjan Roy reportedly informed the Central Economic Intelligence Bureau (CEIB) and the Enforcement Directorate (ED) about the discrepancy regarding missing ₹500 banknotes. However, certain senior officials from RBI have defended the mismatch, citing the complex logistical challenges involved in the printing and supply of currency notes, according to media reports cited by Live Mint.
Meanwhile, the RBI issued a circular on May 19, announcing the withdrawal of the ₹2000 denomination banknotes from circulation. The circular instructed banks to immediately cease the issuance of ₹2000 banknotes.
The general public in India has been advised to deposit or exchange these notes by September 30, 2023. It is important to note that even after the specified deadline in September, the Rs. 2000 banknotes will continue to be recognised as legal tender.