After the currency ban of Rs.1000 Rs.500, 1crore 80 lakhs of old notes has been credited to the Reserve Bank of India. The price of these notes were about 14 lakh crore.
Now these old notes are just like another piece of paper. But What Is the Reserve Bank is going to do with these huge amount of notes?
Typically, multiple kinds of old notes have been rejected by the Reserve Bank every month. From the old note bundle, it it verified that which of the notes are still in good condition. Thereafter, the worst notes is canceled.
Then paper paste is made through the good notes with special formulation. And with them various things, such as calendars, diaries, notebooks page is made. Similarly, old Rs.500 and Rs1000 will be formulated.
The old notes will initially be credited to the Reserve Bank. The notes will be changed in papers in CVPS system. These paper paste cost Rs.5-6 per kg and Rs.280 per ton.
The Reserve Bank have signed a deal with some plywood organization before the ban. Then, plywood will be created with combination of paper paste and wood.
Once in winter, Hungarian common people used the old notes as fuel after currency ban in their country. Winter’s coming in India, let’s see if we are going to have that experience!