RBI's Ambitious Plan to Modernize Currency Management

The Reserve Bank of India plans to revamp its currency management infrastructure over the next 4-5 years to ensure adequate storage and handling capacity for the future cash needs of the economy. This modernization will include the creation of new centers, warehouse automation, and advanced security systems.

The Reserve Bank of India (RBI) is set to overhaul its currency management infrastructure over the next 4-5 years to enhance storage and handling capacities for future cash demands driven by the growing economy.

Plans include creating new greenfield currency management centres, installing warehouse automation, and implementing state-of-the-art security and surveillance systems, according to an RBI document. The project timeline, detailed in an Expression of Interest (EoI), spans 4-5 years for procuring consultancy and project management services.

Despite a recent slowdown in the growth rate of Notes In Circulation (NIC), the analysis predicts a positive growth trajectory over the next decade, ensuring that the monetary needs of the public are met efficiently and securely. The RBI aims to align this modernization with its Clean Note Policy while addressing similar challenges faced by other central banks globally.

(With inputs from agencies.)