Economy
When Govt prints, circulates and burns faulty notes worth Rs30,000 crore
The Nashik Security Press has reportedly burnt 30 crore currency notes of Rs1,000 denomination that had no security thread!
 
The Nashik unit of Indian Security Press (ISP), owned by state-run Security Printing and Minting Corporation of India (SPMCIL), has reportedly burnt 30 crore faulty notes with a denomination of Rs1,000. This has led to the suspension of five employees, including a manager and deputy manager at SPMCIL's Hoshangabad (Madhya Pradesh) unit. 
 
According to reports, the Reserve Bank of India (RBI) through the Government of India (GoI) had placed an order with the Press to print 50 crore notes of Rs1,000 denomination. After receiving paper with security features from SPMCIL's paper mill, the ISP printed about 30 crore notes. The RBI, after receiving these notes from the ISP, distributed about 20 crore notes to several banks. 
 
However, some people complained to RBI about the missing security thread in these new notes. Few also pointed out the upside down watermark image of Mahatma Gandhi on these notes. The Rs1,000 currency notes have a readable, windowed security thread, alternately visible on the obverse with the inscriptions ‘Bharat’ (in Hindi), ‘1000’ and ‘RBI’, but totally embedded on the reverse.
 
The RBI then reported this matter to SMPMCIL, whose chairman and managing director MS Rana, set up a three-member enquiry committee.
 
The Committee headed by TR Gowda, former general manager of ISP's Nashik unit and current in-charge of Hoshangabad unit of SPMCIL, submitted its report. This was followed by suspension of two officials, SR Vajpayee, manager and Ravindra Singh, deputy manager of SMPCIL's Hoshangabad unit. Three employees from ISP, Nashik were also suspended while six supervisors were issued a show cause notice, media reports say.
 
However, Press Majdoor Sangh, the employee union at Nashik, went on an agitation. On Tuesday, the union, detained Sandeep Jain, general manager of ISP, Nashik for the entire day. According to the union, no employee from Nashik is responsible for printing of faulty currency notes, as there was a fault with the security paper itself. However, the action was taken at the Finance Ministry-level and not at ISP-level, Jain had reportedly told the union leaders.
 
In an email reply, an official from RBI, said the matter relates with CNP Nashik, which can provide the answers. The CNP NAshik is not under the central bank's control, the official added.
 
RBI along with the Indian government is responsible for the design, production and overall management of the nation's currency, with an aim to ensure adequate supply of clean and genuine notes.
 
There are four printing presses that print and supply currency notes to the RBI. These are located at Dewas in Madhya Pradesh, Nashik in Maharashtra, Mysore in Karnataka, and Salboni in West Bengal. The Dewas and Nashik units are owned by SPMCIL, while Mysore and Salboni presses are owned by Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a wholly owned subsidiary of the RBI.
 
The Indian government mints coins, which are distributed by the RBI.

User

COMMENTS

Dr Anantha K Ramdas

2 years ago

Interesting comments on the faulty notes and crores spent in "burning" these notes.

Can somebody recommend a suitable, reliable astrologer with track records to the RBI that they must now expedite the issue of polymer currency notes to replace the paper currency, by consulting him?

We have been talking of polymer currency notes; how in selected cities Rs 10 notes were being "market tested"; how these will outlast paper currency notes by several years; how more than 25 countries have benefited by this switch over and yet we have no firm commitment from Government when they will make the change. On the top of this, fake/counterfeit currency notes made in Pakistan have been smuggled into the country and trying the very best to ruin our economy.

Sacking a few guys just won't do; put them in jail for their lifetime and find out the left-out moles in the security press!

MG Warrier

2 years ago

I agree with Jayaram's view. Media headlines including here, which mention notes worth Rs30,000 crore sends out a wrong alarm. It looks, the defective 'printed paper' was destroyed. Lapses need to be looked into, which reportedly the press is doing. The paper becomes 'currency' only when it is issued from RBI.

REPLY

Akshay Kini

In Reply to MG Warrier 2 years ago

If it was only security paper I wonder how banks reported the descripency. Once the RBI sends it to banks it is currency.

MG Warrier

In Reply to Akshay Kini 2 years ago

From what I read in this story, I quote "The Nashik unit of Indian Security Press (ISP), owned by state-run Security Printing and Minting Corporation of India (SPMCIL), has reportedly burnt 30 crore faulty notes with a denomination of Rs1,000. This has led to the suspension of five employees, including a manager and deputy manager at SPMCIL's Hoshangabad (Madhya Pradesh) unit."
my understanding is that what was burnt had not reached RBI from the press. I have not separately verified facts. If you have, please share information.

P Jayaram

2 years ago

Granted, the paper received was faulty, the matter should have been found out during the incoming inspection of the faulty paper.Serious oversight and quality lapse. Procedures need to be strengthened.

Cabinet approves land swap between Mumbai airport, civic body
New Delhi : The central government on Wednesday approved a land swap agreement between Mumbai International Airport (MIAL) and Municipal Corporation of Greater Mumbai (MCGM).
 
The decision was taken by the union cabinet which met here under the chairmanship of the Prime Minister Narendra Modi.
 
MIAL manages and operates the Chatrapati Shivaji International Airport (CSIA) at Mumbai.
 
"The Union Cabinet has given its approval for swapping of Airports Authority of India's (AAI) land, out of land demised to MIAL at CSIA, measuring 2,960.90 sqm. with equivalent land of MCGM for relocation of Cemetery," the cabinet said in a statement. 
 
According to the cabinet, swapping of the land with MCGM will enable MIAL to complete the development work of the Chatrapati Shivaji International Airport, Mumbai. 
 
"Shifting of the cemetery to new location will result in its operationalisation," the statement elaborated.
 
"Since both the AAI land and the private land proposed to be swapped are of the same size and are adjacent to each other as also the circle rate of the land is same, there is no financial implication on the government."
 
The statement added that the cost on account of mutation of the alternate land after the swap will be borne by MIAL. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Cabinet gives nod to new power tariff policy
New Delhi : The union cabinet on Wednesday approved a new power tariff policy designed to promote clean energy, better regulation of distribution companies (discoms), and ease of the process of doing business in the sector.
 
"For the first time, a holistic view of the power sector has been taken and comprehensive amendments have been made in the tariff policy 2006," Power Minister Piyush Goyal told reporters.
 
"The amendments are also aimed at achieving the objectives of Uday (Ujwal Discom Assurance Yojana) with a focus on 4 Es... electricity for all, efficiency to ensure affordable tariffs, environment, and ease of doing business to attract investments to the sector and ensure financial viability," he said.
 
The new policy also proposes to strengthen the regulatory mechanism so that discoms become more efficient in serving their consumers.
 
Highlighting India's international obligations towards reversing climate change under the COP 21 declarations, Goyal said the new tariff policy seeks to boost renewable energy generation.
 
"In order to promote renewable energy and energy security, 8 percent of electricity consumption excluding hydro power, shall be from solar energy by March 2022, as part of the revised Renewable Purchase Obligation (RPO)," the minister said.
 
"We have also introduced a Renewable Generation Obligation, whereby new thermal plants have to have a renewable component to their generation," he added.
 
Goyal said the new tariff policy had special provisions to promote the philosophy of "waste-to-wealth".
 
"To release clean drinking water for cities and reduce pollution of rivers, thermal plants within a 50 km of radius of sewage treatment facilities will use treated sewage water," Goyal said, adding that Nagpur municipality, in his home state of Maharashtra, is already implementing such a project.
 
The new policy will also allow distribution companies to buy any quantum of power produced from waste.
 
For the promotion of hydro projects, Goyal said these will be allowed to charge tariffs on a cost-plus basis through long term power purchase agreements (PPAs), and will be exempt from competitive bidding till August 15, 2022.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

COMMENTS

Siva Kumar Dattu

2 years ago

first it should be affordable

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Online Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine)