In a move to regulate the increasing circulation of notes, the Reserve Bank of India has decided to set up an automatic banknote processing centre in Jaipur. The circulation of banknotes has been increased three times from 2001 until now.
Receipt, storage and dispatch of notes will be executed from Automatic Banknote Processing Center (ABPC). The other functions at this centre will be the processing of banknotes attained from currency chests and bank branches along with destroying torn and dirty notes in an automated procedure.
As per the RBI, despite the increase in digital transactions, cash payments are still an important mode of transaction for most Indians. Moreover, with an increase in digital transactions, there has also been a rapid growth in the circulation of banknotes. The global trend of increase in the circulation of banknotes in large quantities was also seen in India.
There have been a three times rise in the circulation of banknotes from March 2001 to March 2019. Also, the quota of banknotes by the press has risen almost four times from March 2001 to March 2019 and is believed to increase in the coming years.
To overcome the situation, it is time to change the existing system of cash management. In such a situation, it has been decided to fully automate the work of bank processing for storage retrieval processing and destruction obeying the global changes and with recent technology.