RBI Plans to Revamp India’s Currency Management Infrastructure

The Reserve Bank of India (RBI) has announced a comprehensive plan to revamp its currency management infrastructure over the next 4-5 years, mainly to ensure adequate storage and handling capacity to cater to the growing economy’s future cash needs.

The plan was detailed in an expression of interest (EOI) released on 12 September, titled ‘Procurement of Consultancy and Project Management Services for the Modernization of Currency Management Infrastructure in India’.

According to the EOI, the plan includes establishing greenfield currency management centres (CMCs), introducing warehouse automation, installing security and surveillance systems, and developing an inventory management system. A centralised command centre is also being proposed to modernise the existing infrastructure.

Currency in circulation

India’s Notes in Circulation (NIC) have significantly increased over the past two decades. As of 31 March 2024, NIC stood at 146.87 billion pieces, up from 136.21 billion the previous year. Coins in Circulation (CIC) have also grown, reaching 132.35 billion pieces.