Central Bank urges public to avoid defacing notes
View(s):Over the last decade, currency in circulation has been increasing at an annual rate of 13 -14 per cent in line with expansion of economic activities and price movements. The total value of currency in circulation at the end of 2012 was Rs. 318 billion, of which around 98 per cent was in currency notes.
The CB, in a report on a ‘clean note’ policy, says it continuously provides new and fit (serviceable) currency notes through the banking system to meet public demand while withdrawing soiled notes out of circulation through the same system. The value of new currency notes issued to commercial banks last year was Rs. 75 billion. The CB destroyed 159.6 million pieces of unfit (unserviceable) currency notes in 2012. The cost to destroy notes was around Rs. 855 million.
With usage, currency notes become unfit. The lifespan of a currency note mainly depends on the quality of the paper of note, the frequency of usage and the conditions under which they are used. The lower value currency notes have a shorter lifespan due to their high velocity than the notes with high values. The average lifespan of Rs. 10 and Rs. 20 currency notes is around 20 and 30 months respectively, while the average lifespan of Rs.1,000 is approximately 80 months.
The CB has now introduced a Clean Note Policy with the objective of having good quality currency notes in circulation.
The public has a responsibility toward the nation as they are the beneficiaries of currency issues and therefore need to cooperate with the CB to implement this policy.
The public can contribute to improve cost efficiency of currency management at national level by avoiding improper habits of handling currency notes such as, writing or drawing on notes, defacing security features and images of notes, cutting or scratching notes, handling notes with soiled/ dirty hands, keeping notes in places where they are exposed to heat or damp conditions or liable to damage by insects and collecting notes in tills with coins.
“While avoiding the bad habits above, it is necessary to inculcate good habits and attitudes such as use of notes with care, placing notes without folding or crushing in wallets/ purses/ envelopes according to the order of denomination for ease of handling, acquiring the habit of transacting in clean notes, depositing unfit notes in bank accounts or exchanging unfit notes for fit notes from banks and keeping notes clean as it is a reflection of our culture, attitude and the level of prosperity,” the statement said.
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