RBI mulls Major Upgrades to Currency Management Infrastructure

The Reserve Bank of India is planning a major overhaul of its currency management system over the next 4-5 years. This revamp aims to ensure that there is enough capacity to store and handle cash as India’s economy continues to grow.

The RBI’s plans include setting up new currency management centers, automating warehouses, improving security and surveillance systems, and introducing a centralised command center to manage operations more efficiently.

These updates aim to modernize currency management, as stated in a recent document from the central bank.

Read Also : NLCIL signs MoU with IIM Calcutta

The project is expected to take 4-5 years to complete, as outlined in the RBI's expression of interest (EOI) for consultancy and project management services.

The RBI noted that even though the growth of Notes in Circulation (NIC) has slowed over the past three years, the demand for cash will continue to grow in the coming years. "The growth will remain positive, but the pace may slow down over the next decade," the RBI stated.

The central bank also expects the volume of cash in circulation to increase in the future, ensuring that the public has easy access to the cash they need.

Read Also : IREDA to Raise Approx Rs 4500 Cr Through Fresh Equity Issue