Banknotes get damaged or mutilated soon due to
haphazard stitching by banks and financial institutions (BFIs) and lack
of proper knowledge among people on note handling, according to Nepal
Rasta Bank (NRB) officials.
To increase life of banknotes, NRB has already instructed BFIs not to put stitches on banknote wads. It has also requested general people to protect the notes from colors and water.
While issuing banknotes to BFIs, NRB puts its own bands on bundles of notes. However, BFIs put own stitches on bundles as per their need.
“We have allowed BFIs to stitch on the notes only one time. But we have seen multiple stitching on banknotes. This shortens life of banknotes,” a senior official of NRB told Republica.
The official also banknotes are damaged fast because of the trend of soaking notes with water, oil, color and other liquids. Multiple folding also shortens life of banknotes.
According to officials, banknotes of Rs 1,000 and Rs 500 denominations have life of around three to four years while notes of smaller denominations have life of about two years.“We are regularly asking BFIs and people to be serious about note handling. Sometimes we also conduct onsite monitoring at different BFIs in this regard,” the source added.NRB has to spend at least one rupee to print each banknote.
Upendra Poudel, vice president of Nepal Bankers´ Association and CEO of NMB Bank, said sometimes banks need to put additional stitches on notes.NRB has started distributing new notes for Dashain festival from Tuesday. It plans to circulate new notes worth Rs 30 billion in the market during the festival. Last year, the central bank had distributed new notes worth Rs 25 billion during Dashain.
According to NRB officials, banks and financial institutions will get new notes worth Rs 500,000 to Rs 100 million depending on the transaction size.
source: republica,1 oct 2013
Link
To increase life of banknotes, NRB has already instructed BFIs not to put stitches on banknote wads. It has also requested general people to protect the notes from colors and water.
While issuing banknotes to BFIs, NRB puts its own bands on bundles of notes. However, BFIs put own stitches on bundles as per their need.
“We have allowed BFIs to stitch on the notes only one time. But we have seen multiple stitching on banknotes. This shortens life of banknotes,” a senior official of NRB told Republica.
The official also banknotes are damaged fast because of the trend of soaking notes with water, oil, color and other liquids. Multiple folding also shortens life of banknotes.
According to officials, banknotes of Rs 1,000 and Rs 500 denominations have life of around three to four years while notes of smaller denominations have life of about two years.“We are regularly asking BFIs and people to be serious about note handling. Sometimes we also conduct onsite monitoring at different BFIs in this regard,” the source added.NRB has to spend at least one rupee to print each banknote.
Upendra Poudel, vice president of Nepal Bankers´ Association and CEO of NMB Bank, said sometimes banks need to put additional stitches on notes.NRB has started distributing new notes for Dashain festival from Tuesday. It plans to circulate new notes worth Rs 30 billion in the market during the festival. Last year, the central bank had distributed new notes worth Rs 25 billion during Dashain.
According to NRB officials, banks and financial institutions will get new notes worth Rs 500,000 to Rs 100 million depending on the transaction size.
source: republica,1 oct 2013
Link
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