The Reserve Bank of India (RBI) faces increasing costs in printing various currency notes, with input prices rising annually. A Past data reveals intriguing insights into the expenses incurred by the central bank for printing notes of different denominations.
Printing Costs of Different Denominations
According to information obtained through a Right to Information (RTI) request from Bharatiya Reserve Bank Note Mudran Ltd (BRBNML), the costs of printing notes vary significantly. Here’s a breakdown of the expenses for printing 1,000 pieces of each denomination in the financial year 2021-22:
- Rs 10 Notes: Rs 960 (96 paise per note)
- Rs 20 Notes: Rs 950 (95 paise per note)
- Rs 50 Notes: Rs 1,130 (Rs 1.13 per note)
- Rs 100 Notes: Rs 1,770 (Rs 1.77 per note)
- Rs 200 Notes: Rs 2,370 (Rs 2.37 per note)
- Rs 500 Notes: Rs 2,290 (Rs 2.29 per note)
Overall Printing Expenses
In one of old the financial year, the RBI reportedly spent Rs 5,000 crore on printing currency, marking the second-highest expenditure since the demonetization period, which saw costs peak at nearly Rs 8,000 crore. The RBI handles the printing and management of currency in India, while the Indian government regulates the denominations.
Rising Input Costs
The increase in printing costs is attributed to rising inflation and the soaring prices of essential materials such as paper and ink. It’s interesting to note that the RBI incurs a higher cost for printing Rs 200 notes compared to Rs 500 notes, despite the latter being a larger denomination.
The Curious Case of Rs 10 and Rs 20 Notes
In a surprising twist, the cost of printing Rs 10 notes is actually higher than that of Rs 20 notes. For instance, the cost of printing 1,000 Rs 10 notes is Rs 960, while printing 1,000 Rs 20 notes costs Rs 950. This discrepancy highlights the complex nature of currency production and distribution.