New Rs 500 and Rs 2000 notes issued today: Economics of printing money

The average age of the notes are usually less than a year but depend on usage. Lower the value, higher the usage

New notes are issued by the Reserve Bank of India (RBI)’s department of currency management.

It gets the notes from four presses. The Security Printing and Minting Corporation of India (SPMCIL) has presses at Nashik in Maharashtra and Dewas in Madhya Pradesh. The other two are owned by RBI, through a subsidiary, Bharatiya Reserve Bank Note Mudran (BRBNML), at Mysuru, Karnataka, and Salboni in Bengal.

Printing cost varies. That for a Rs 1,000 note at BRBNML is Rs 2.67 each; in SPMCIL, Rs 3.15. The cost of printing Rs 100 notes in these is Rs 1.20 and Rs 1.41 apiece,