The rising inflation has led to an increase in the cost of printing notes.
The printing and management of currency in India are handled by the Reserve Bank of India (RBI), while the Indian government is responsible for regulating denominations. RBI has the authority to print currency notes with a maximum denomination of Rs 10,000. The Central Government and RBI incur significant expenses for printing the currency notes that are widely used by people on a daily basis. The rising inflation has led to an increase in the cost of printing notes. Since 2021, the prices of paper and ink have skyrocketed. It is interesting to note that the RBI spends more on printing Rs 200 notes than on printing Rs 500 notes.
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The cost of printing a Rs 10 note is greater than that of printing a Rs 20 note. The production of coins costs the government more than printing notes.
It costs more to print 1000 notes of Rs 10 compared to 1000 notes of Rs 20
According to information obtained through an RTI request from the printing company Bharatiya Reserve Bank Note Mudran Limited (BRBNMPL), as reported by Moneycontrol, it cost Rs 960 to print 1000 notes of Rs 10 in the financial year 2021-22 (FY22). Therefore, the cost of printing one note of Rs 10 was 96 paise. On the other hand, the RBI spent Rs 950 to print 1000 notes of Rs 20, which means the cost per note was 95 paise. Hence, it costs more to print 1000 notes of Rs 10 compared to 1000 notes of Rs 20. In FY22, the printing cost of 1000 notes of Rs 50 for the RBI was Rs 1,130, while the cost for 1000 notes of Rs 100 was Rs 1,770.
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The cost of printing a Rs 200 note is higher
RBI had to reportedly spend Rs 2,370 to print 1000 notes of Rs 200, which are currently in high demand. However, it is worth noting that the cost of printing notes of Rs 500 is lower than that of printing notes of Rs 200. Specifically, the printing cost of 1000 notes of Rs 500 is Rs 2,290.
Printing of currency notes
The printing of currency notes is carried out in four presses located in the country, two of which belong to the RBI and the other two belong to the central government. RBI’s presses are situated in Mysore and Salboni, whereas the government’s presses are located in Nashik and Dewas. Currently, the biggest denomination note in the country is the Rs 2,000 note, which the RBI is not producing presently.
