RBI to spend INR 12000 crore on replacing 500 and 1000 rupee notes

Q.  How much will replacing INR 500 and 1000 rupee notes cost the RBI?
- Published on 09 Nov 16

a. INR 13000 crore
b. INR 12000 crore
c. INR 11000 crore
d. INR 10000 crore

ANSWER: INR 12000 crore
 
RBI to spend INR 12000 crore on replacing 500 and 1000 rupee notesReplacing INR 500 and 1000 denomination notes will cost RBI INR 12,000 crore based on number of notes in circulation and the cost incurred in printing them.
  • RTI queries show it costs INR 2.50 to print each INR 500 denomination note and INR 3.17 to print an INR 1000 note.
  • This costs the central bank INR 3917 crore to print INR 1567 crore Rs. 500 notes in circulation and INR 2000 crore to print the 632 crore INR 1000 notes in circulation recently.
  • Removing all notes and replacing them with new INR 500 and 2000 notes will cost the apex bank INR 12000 crore therefore.
  • By replacing the INR 1000 notes, the government is doing away with the cheapest note to print in relation to the face value of the note.

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