Old notes contain security threads, fibers, special inks and chemicals, which if thrown directly into the ground or burnt, can have a bad effect on the soil, air and environment. In such a situation, RBI will now use the old torn notes to make furniture.
The Reserve Bank of India (RBI) is now planning to reuse old, torn and out-of-circulation notes in an environmentally friendly way instead of just burning or melting them. In its recent annual report, RBI said that these notes will now be used to make particle boards, which can be used to make chairs, tables and other furniture.
How was settlement done till now?
Every year, the Reserve Bank receives more than 15,000 tonnes of currency notes that are taken out of circulation due to being old, torn or for other reasons. Till now, these notes were destroyed either by burning or by rotting them. This process was not only expensive but was also harmful to the environment.
What will change now?
RBI has now contacted companies that make particle boards. Under the scheme, the Reserve Bank will convert these damaged notes into fine shreds and sell them to these companies. This will provide cheap and durable raw material to the companies, while the cost of destruction for RBI will also decrease. The bank will also get additional income from this process.
Beneficial for the environment
RBI has taken this step in the interest of environment. Till now, the process of burning notes or dumping them in landfill was considered harmful for the environment. Therefore, the bank got a study done on this subject from the Institute of Wood Science and Technology under the Union Ministry of Environment, Forest and Climate Change. In the study, it was found that the scraps of old notes can be effectively used in the manufacture of particle board.
What is particle board?
Particle board is a type of engineered wood that is prepared by mixing wood shavings, sawdust or other fibers with glue and resin. Now this will also include shreds of old notes, which will be used to make durable furniture like chairs, tables, cupboards.
