30 May 2025: According to the RBI report, special steps are being taken to make the disposal of paper currency environmentally friendly. Under this, RBI will use torn banknotes to manufacture wooden boards (particle boards). The central bank has started the process of including manufacturers who make such boards in a panel.
How many old notes every year…
In its 2024-25 annual report, RBI mentioned that the total weight of torn or bricked (pieces combined into blocks) banknotes prepared annually in India is about 15,000 tonnes. Now, a way is being sought for the disposal of these damaged currency papers. Traditionally, most central banks and currency management authorities dispose of cut banknotes by burying them underground or burning them as fuel, which is not environmentally friendly.
Hope arises through research…
The report says that the RBI commissioned a study through a self-governing institution under the Ministry of Environment, Forest and Climate Change called the Wood Science and Technical Institute to find alternative solutions. It was found that blocks made from torn and old notes meet the technical requirements for wooden boards. The central bank has started the process of including particle board manufacturers in the panel. These manufacturers will purchase currency paper bricks as a substitute for wood particles in their boards.
What are the risks from these old notes…
The currency management department will actively continue its initiative to find more environmentally sustainable methods for disposing of banknote pieces/bricks. The report states that the security threads, fibers, security inks, and other chemicals used in banknotes impact the environment. Therefore, their disposal needs to be more durable and environmentally friendly. This technology has now been discovered.
Summary:
RBI launches a unique initiative to recycle damaged currency notes into furniture. Over 2 lakh counterfeit notes were detected in FY25, promoting eco-friendly reuse.