Friday, 3 July 2015

Printing a one rupee note costs more than its value!



The One Rupee note, a new inclusion into the Indian currency after a gap of 20 years by the Indian government, is surely a cool thing being brought back and the very idea of re-introducing the One Rupee note made many people happy to be able to relieve those days of using the little note. But amidst an opportunity to go back to the past days, this has also been brought into light that printing this note is actually costing the government more than the value of the note!   

The One Rupee note, as is pretty clear, values Rs. 1 only, but this was not known to anybody that for printing this note government is paying Rs 1.14 per note, which means it costs 14 paisa more than its value. This has got to be revealed only after an RTI query was filed for an audit in progress, for financial year 2014-15. The Security Printing and Minting Corporation of India (SPMCIL), under the central government stated that activist Subhash Chandra Agrawal had filed the RTI.

The reply stated, "The cost of one rupee note is Rs 1.14 (provisionally and unaudited) as determined in accordance with the principle of costing and costing module."

However, this was the same reason for which printing of this note was discontinued in 1994. The same reason is stated for the discontinuation of the two-rupee and five-rupee denominations as well. Further, these currencies were being coinised rather than printing in paper.

Agarwal has also inquired to find the answer to this question as to why the one rupee note carries the signature of the Finance Secretary, whereas other currency notes bear the signature of RBI Governor.

He said, "Enquiry should be made if retrogressive step of re-issue of costly one rupee notes was taken so that signature of top bureaucrat of Union Finance Ministry may appear on these notes for becoming a historical feature in future." 

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