India’s RBI refutes allegations of unaccounted currency notes worth billions, calls reports incorrect

The Reserve Bank of India (RBI) has responded to media reports alleging a substantial amount of missing banknotes, as per a response to a Right to Information (RTI) query, and debunked all the claims, saying the interpretations drawn from replies to different units as too far fetched and grossly incorrect. 

The RBI clarified that these reports are incorrect as they stem from a misinterpretation of information obtained from the currency printing presses under the RTI Act. The central bank reassured that all banknotes issued by the presses have been properly accounted for, dispelling any notion of unaccounted currency.

“The RBI has come across reports circulating in certain sections of the media alleging missing banknotes printed by the banknote printing presses. The RBI emphasises that these reports are not correct,” the central bank said in a statement.

“It may be noted that all banknotes supplied from printing presses to RBI are properly accounted for. It is further informed that there are robust systems in place for reconciliation of banknotes printed at the presses and supplied to RBI which include protocols to monitor production, storage and distribution of banknotes.”

RBI urged the public to rely on the information published by RBI from time to time in such matters.

The RBI reportedly did not receive 1,760.65 million currency notes of ₹500 each, said media reports citing RTI activist Manoranjan Roy’s supposed findings under India’s Right to Information Act on Saturday.

The value of notes, reported to be missing as per tManoranjan Roy was a staggering ₹88,032.5 crore (nearly $11 billion). 

“The apex bank is indifferent to the harm caused to the Indian economy with such a huge mismatch in high denomination Indian currency notes printed in the mints and the total received in the RBI vaults. The missing 1,760.65 million pieces is no joke. It raises security concerns about our Indian economy and its stability,” Roy was quoted as saying by the Free Press Journal.

What has happened, according to report?

It has been reported that the Reserve Bank of India’s money-minting press in Maharashtra state’s Nashik issued 8,810.65 million pieces of the newly designed ₹500 note. Of these, the RBI received only 7,260 million pieces, according to activist Manorajan Roy’s RTI findings reported in the Free Press Journal. 

The Report of the Currency Note Press, Nashik, shows the newly designed ₹500 currency notes were supplied to the Central bank but the RBI annual report does not mention receiving any ₹500 notes with the new design, in its Public Domain Annual Report on Currency Management. 

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The information provided by the Currency Note Press, Nashik, mentions 1,662.000 million pieces of the newly designed Rs 500 note were supplied to the RBI in 2016-2017, Free Press Journal reported.

The report further adds that the Bharatiya Reserve Bank Note Mudran (P) Limited, Bengaluru, supplied 5,195.65 million pieces of ₹500 to the RBI and the Bank Note Press, Dewas, supplied 1,953.000 million pieces to the RBI in 2016-2017.

Of these, the RBI received only 7,260 pieces of the newly designed ₹500 note from all three printing presses. 

There is reported to be a mismatch. A total of 8,810.65 million pieces of the newly designed ₹500 note were printed by the three units in all, but the RBI received only 7,260.000 pieces.

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