Mumbai: The surprise move of demonetisation announced by Prime Minister Narendra Modi on earlier on November 8 has made around 23 billion currency notes worthless. The Central Banking Institution(CBI) in this connection has adopted certain new methods for recycling the soiled notes for various purposes.
Out of the 23 billion old notes, The Reserve Bank of India(RBI) assumes around 70 percent of it, making 15000 million old currency to be recalled. Meanwhile, the central banking institution has allocated 40 verifying and shredding machines across 19 locations in India where the machines can destroy about 2,50,000 notes in an hour. After being shredded, the bits are sent to dealers for recycling or to make briquettes, which are compressed blocks of biomass material used for fuel. Besides, the notes are also being sent to Western India Plywood (WIPL) yards in Kannur, Kerala, chosen by the RBI, for pulping. As of now, WIPL has received over 140 tonnes of Rs 500 and Rs 1,000 notes for pulping over the past three weeks. These shreds of notes are combined thoroughly with wood chips before being fed into a press make hardboard, soft board and pressboard.
WIPL under the provision would pay Rs 250 per tonne for taking 40 tonnes of scrapped notes from RBI per week.