Ahead of demonetisation of the old Rs 500 and Rs 1000 notes, the banks across the country have started collecting and replacing the old currency with the new one.
A time period of 50 days till December 30 to deposit all the old currency notes and to swap them with the new currency notes. There are about 22 billion old currency notes of Rs 500 and Rs 1000 at present, which accounts for around 24% of the total 90.26 billion notes in circulation.
Now, most of you must be thinking that, what will happen to these billions of old currency notes once they will be collected by the government.
So, here we will tell you what will happen to the old use less Rs 500 and Rs 1000 notes:
According to Arvind Virmani, India’s former chief economic advisor, “They will destroy them, as they do all old, damaged notes,”.
“There will be shredding. But, (I) don’t know if the shredded material is burnt,” he also added.
Reserve Bank of India currently has 27 shredding and briquet machines, which latter is used to make smaller bricks of paper out of the discarded notes and it is done at 19 different locations in the country.
FAQ section of the RBI’s official website says, ” Banknotes returned from circulation are deposited at the issue offices of the Reserve Bank.”
It is believed that once shredded waste of the notes is likely to be disposed of in landfills and reclamations.
“We produce between 20 and 25 sacks like that every day,” R Gandhi, a deputy governor at RBI, had told the Mint newspaper in 2008.