Printing new currency will cost more to RBI
New currency notes of Rs 500 and Rs 1000 denominations is said not to be legal tender at the start on November 9th. This was said to be announced by Prime Minister Narendra Modi in a special address to the nation on Tuesday evening.
When replacing all Rs.500 and Rs.1000 denomination notes with other denominations could cost Reserve Bank of India at Rs. 12,000 crore, based on the number of notes in circulation and the cost incurred in printing them.
It costs Rs 2.50 to print each Rs 500 denomination note and Rs. 3.17 to print a Rs. 1,000 note. New Rs 500 notes cost at the same to print then its an additional Rs 3917 crore spent in simply to maintain the same number of notes in circulation.
The new Rs. 2,000 notes are likely to cost about the same or a little more than the Rs. 1,000 notes, which means an additional cost of Rs. 2,000 crore to print them.