Banknotes of old series are phased out periodically in a non-disruptive manner. RBI issues instructions to banks to ensure that such banknotes are not re-issued to the members of public. The details of phasing out process initiated during the last five years are as under:

State-of-the-art printing machinery has been installed for printing banknotes in the four presses under SPMCIL and BRBNMPL. The design and production of printing plates is done in-house by the Presses. Steps for indigenization of production of banknote paper have also been initiated. One new banknote paper line with 6000 MT annual capacity is under installation at Security paper Mill, Hoshangabad. This will be in addition to the existing capacity of 3000 MT security paper. Further, one joint venture company namely Bank Note Paper Mill India Limited (BNPMIL) has been set up at Mysore by SPMCIL and BRBNMPL where two banknote paper lines of annual capacity of 12000 MT are under installation. On commissioning of these two projects, major requirement of banknote paper will be met indigenously.

This was stated by Minister of State for Finance, Shri Namo Narain Meena, in written reply to a question in the Lok Sabha today.

Banknote production modernisation and indigenization enables phased withdrawal of old series while securing domestic paper supply. Phasing out of older banknote series is effected through central bank instructions to banks to prevent re issuance and by staged withdrawal processes for specified denominations. Simultaneously, printing infrastructure has been modernised with state presses installing advanced machinery and in house plate production, while indigenisation of banknote paper is being pursued via new paper lines at an existing mill and additional lines through a joint venture mill to meet domestic paper requirements.