New currency note paper unit to be set up, says RBI

Reserve Bank of India Governor D Subbarao has said a new facility would soon be set up in the country for producing paper for currency notes.

“The government and RBI have resolved to set up a modern facility for producing paper for currency notes in the country. Though there is a facility right now at Hoshangabad, it is an old one. The new facility is intended to check fake currency notes,” Subbarao said here today.

He also denied reports that fake notes showing a value of Rs 1.65 lakh crore are in circulation in the country.

“Those reports are wrong. As per a report we brought out two days ago, there are about three to six (fake currency) pieces per million, which is quite in tune with international standards. But, we are not undermining the problem. Fake currency is a problem,” Subbarao said.

While the circulation of fake currency within the banking system was a concern of the RBI, what happens outside the banking system was not under its control, he pointed out.