(MENAFN- KNN India)
New Delhi, Sep 16 (KNN) The Reserve bank of India (RBI) has announced plans for a comprehensive modernisation of its currency management infrastructure over the next 4-5 years.
This initiative aims to bolster storage and handling capacities to meet the future cash requirements of India's growing economy.
According to an RBI document, the proposed upgrades include establishing new currency management centres, implementing warehouse automation, enhancing security and surveillance systems, introducing an inventory management system, and creating a centralised command centre.
The central bank has issued an Expression of Interest (EoI) for consultancy and project management services to support this extensive modernisation effort.
Despite a recent slowdown in the growth rate of Notes in Circulation (NIC), the RBI anticipates continued positive growth in the coming years, albeit at a more moderate pace over the next decade.
As of March 31, 2024, the NIC volume stood at 146.87 billion pieces, up from 136.21 billion pieces a year earlier.
Coins in Circulation (CIC) also saw an increase, reaching 132.35 billion pieces by March 31, 2024, compared to 127.92 billion pieces the previous year.
The RBI emphasised that the current infrastructure requires modernisation to ensure adequate capacity, optimise operations, and make the process more secure and environmentally friendly.
This move aligns with the bank's Clean Note Policy, which is expected to generate an increased volume of soiled notes requiring processing.
Currently, banknotes are printed at four presses and coins are minted at four mints across India. The new currency is received at 19 Issue Offices and distributed to approximately 2,800 Currency Chests operated by scheduled banks.
The RBI's decision follows similar initiatives by central banks and monetary authorities in other countries, including Austria, Egypt, France, Germany, Hungary, Indonesia, Japan, Malaysia, and the United States.
These nations have modernised their currency management infrastructure to address challenges posed by increasing banknote volumes, rising costs, and security risks.
By undertaking this large-scale modernisation, the RBI aims to create state-of-the-art storage and handling facilities, enhance operational efficiency, strengthen security measures, and contribute to environmental sustainability in currency management across India.
(KNN Bureau)
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