International Journal of Mechanical Engineering and Technology (IJMET)
Volume 10, Issue 1, January 2019, pp. 791–797, Article ID: IJMET_10_01_081
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=1
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication
Scopus Indexed
CURRENCY NOTES WASTE UTILIZATION
TOWARDS RESOURCES OPTIMIZATION AND
ENVIRONMENT PROTECTION IN INDIAN
ECONOMY: POTENTIALITIES AND
PROSPECTS
Dr. A. G. Matani
Associate Professor- Mechanical Engineering,
Government College of Engineering, Amravati – 444604 [M.S.] India
Premesh P. Bhatkar
M.Tech. [Thermal Engineering],
Government College of Engineering, Amravati – 444604 [M.S
Dr. S. K. Doifode
HOD - Chemistry Department,
Government College of Engineering, Amravati – 444 604 [M.S.] India
ABSTRACT
Cash continues to grow and remains in intensive use around the globe – to such
an extent that most economies define themselves as high to very high in cash intensity.
As a result, large quantities of unfit banknotes accumulate and are destroyed. In
response to inquiries from Central Banks, Currency Research has performed a study
on best practices in the handling and processing of banknote waste. A questionnaire
was distributed to one hundred and ten Central Banks. The responses given by fiftyone banks were analyzed and follow-up discussions with banks and suppliers of
banknote products and services were conducted. Consumers must be at least provided
with re-issuable notes. The notes identified for disposal were shredded and made into
briquettes weighing about 100 Gms. The present system has not only prevented
environmental pollution but also helped in manufacturing of eco friendly products.
Until 2001, the soiled and torn currency notes that were taken back were incinerated.
The briquettes are sold for industrial use through tenders. A kg of such briquettes are
sold for a minimum of Rs.6. On an average, nearly 8.28 lakh kg briquettes are
manufactured every year. The shredded currency is recycled into various products,
including files, calendars and even paper weights. Such briquettes are also distributed
as souvenirs to the visitors at the stalls of RBI in exhibitions. More people must come
forward to make eco friendly products using shredded currency.
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A. G. Matani, Premesh P. Bhatkar and S. K. Doifode
This paper explores the potential of currency waste utilization towards
environmental protection in India.
Keywords: Banknote destruction, disposal, and recycling, banana fiber,
biotechnology in processing of shredded currency waste, effective tool for recreation
& long lasting life of products.
Cite this Article: A. G. Matani, Premesh P. Bhatkar and S. K. Doifode, Currency
Notes Waste Utilization Towards Resources Optimization and Environment Protection
In Indian Economy: Potentialities and Prospects, International Journal of Mechanical
Engineering and Technology, 10(1), 2019, pp. 791–797.
http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=1
INTRODUCTION
Recycling is not an obligation, but rather it is a way of living for a sustainable future. In
today’s competitive world, manufacturers creates low cost products resulting less product life,
thereby generating huge amount of waste, which harm’s our nature & environment. To fulfill
the same ‘7R’, an effective tool for recreation & long lasting life of products is utilized:-** Research – Devising ways to convert ‘Waste’ into ‘Resource’
** Renovate – Modification of ‘Waste’ into ‘Resource’
** Reduce – Waste Minimization by appropriate techniques
** Reuse – Innovative use of ‘Waste’ as ‘Green Products’
** Recycle – Converting to value added end products
** Recover – Energy and Product recovery through conversion.
** Recharge – Conserve our most precious renewable resource
Much of the old currency notes will be now used to make plywood, and soft and
hardboards. Plywood, hard board and soft board go into making all kinds of furniture and
partitions. Normally, plywood and similar board manufacturing uses wood pulp as a major
ingredient to make hard board, press board and soft boards. Western India Plywoods Limited
(WIPL) based in Valpattanam in Kerala found that when 7% of shredded currency was mixed
with wood pulp and pressed together, it made excellent boards without compromising the
strength, density or quality of the boards. And, it was cost effective as well. RBI sold the
shredded currency at the rate of Rs 250 per ton to Western India Plywoods Limited (WIPL)
based in Valpattanam in Kerala.
Table 1 Number of Counterfeit Notes Detected (April to March)
(No. of pieces)
Year
2013-14
Detection of Reserve Bank
Other banks
19827
468,446
(4.1%)
(95.9%)
2014-15
26,128 (4.4%)
568, 318 (95.6%)
2015-16
31,765 (5.0%)
6,01,161 (95.0%)
Source: https://rbidocs.rbi.org.in/rdocs/AnnualReport
Total
488, 273
(100%0
594, 446 (100%)
6,32,926 (100%)
Remarks: The data does not include counterfeit notes seized by the police and other
enforcement agencies.
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Currency Notes Waste Utilization Towards Resources Optimization and Environment Protection In
Indian Economy: Potentialities and Prospects
Table 2 Disposal of Soiled Banknote (April-March)
(Million pieces)
Denomination (Rs.)
Year 2013-14
1000
511
500
2,405
100
4,972
50
1,398
20
725
10
4,128
Upto 5
48
Total
14,187
Source: https://rbidocs.rbi.org.in/rdocs/AnnualReport
Year 2014-15
663
2,847
5,173
1,271
801
4,338
44
15,137
Year 2015-16
625
2,800
5,169
1,349
849
5,530
46
16,368
Vast potential for handmade paper from waste currency
With the growing demand of handmade paper both in the domestic and export markets, the
Indian handmade paper industry has been confronting with the major issue of scarce
availability and cost prohibitiveness of the cotton hosiery waste, the traditionally used
principal raw material for making handmade paper. As a result of the exhaustive R&D work
carried out at Kumarappa National Handmade Paper Institute, various ligno-cellulosic raw
materials available as waste biomass in different parts of country and the recycled waste paper
particularly the shredded currency waste of Reserve Bank of India has been found to be very
good and cost effective raw material for making good quality handmade paper. The recently
developed process of recycling the shredded currency waste through bio-enzymatic pulping
produces not only a quality handmade paper but also resulted in a large saving of the precious
resources like water, energy and chemicals. Physical strength properties of the handmade
paper developed from shredded currency waste were found to be better than that produced
from mixed office waste (MOW). Besides, shredded currency waste is available at a much
cheaper rate than the waste paper. The strength of the paper produced from it could be
improved further by blending it with the pulps prepared from mixed hosiery waste or other
long fiber pulps. The paper thus produced can be utilized for making strong cany bags so as to
substitute the polythene bags mat are going to be banned because of their recalcitrant nature.
The process has been successfully up-scaled to the pilot-plant level and is also found to be
economical. Thus the adoption of the shredded currency waste as a raw material and its
processing through enzymatic route might help in improving the cost-competitiveness and
environmental status of the Indian handmade paper industry.
Old currency notes pulp mixed with wood pulp used as hardboards in South
Africa
Hundreds of thousands of old currency notes of Rs 500 and Rs 1000, declared invalid by the
Government in the recent past, are making the rounds in far-away South Africa. The invalid
notes, turned into a pulp and mixed with wood pulp, are being used as hardboards in South
Africa, where general elections are scheduled in 2019. The exported hardboards are being
used as placards and hoardings in the election campaign. The Logical Indian community
appreciates the initiative taken by WIP and the RBI where the invalid notes are being put to
good use by being recycled and used for election campaigns in South Africa. Around 800
tonnes of demonetised currency was received by the company from the Reserve Bank of
India’s regional office in Thiruvananthapuram. Each ton of notes is bought by WIP from the
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A. G. Matani, Premesh P. Bhatkar and S. K. Doifode
RBI for Rs 128. The entire process is undertaken at the WIP headquarters in Valapattanam in
Kannur. The RBI sends the shredded notes to WIP which is then cooked at high temperature.
The technique of thermo mechanical pulping is used to high-quality pulp currencies. The pulp
is then put into a defibrillator (a refiner which grounds pulp material using steam). After that,
it is mixed with wood pulp to make it strong enough to build into hard boards.
Navsari Agriculture University (NAU) making long lasting currency notes
The Navsari Agriculture University (NAU) in Gujarat has standardized a process of
manufacturing high value paper from Banana fiber, which it claims has the property of
making currency notes lasting for about a Century. The paper has been tested in the Central
Institute for Research on Cotton Technology. During the research, it was found that paper
made out of this fiber has shelf life of over 100 years as it is the strongest of the long fibers
ever found application of Banana fiber is viable as its availability is not a constraint. It is
generated from stem of the plant which usually goes as waste and has no other application.
From one hectare of Banana cultivation about 600 to 800 kilogram of fiber shall be available.
The university has filed five different patents from various usage of Banana plant, which
includes making of yarn for textiles, paper and candy.
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Currency Notes Waste Utilization Towards Resources Optimization and Environment Protection In
Indian Economy: Potentialities and Prospects
CONCLUSIONS
The enormous increase in the quantum and diversity of waste materials generated by human
activity and their potentially harmful effects on the general environment and public health,
have led to an increasing awareness about an urgent need to adopt scientific methods for safe
disposal of wastes. While there is an obvious need to minimize the generation of wastes and
to reuse and recycle them, the technologies for recovery of energy from waste can play a vital
role in mitigating the problems. Besides recovery of substantial energy, these technologies
can lead to a substantial reduction in the overall waste quantities requiring final disposal,
which can be better managed for safe disposal in a controlled manner while meeting the
pollution control standards. While most paper used for such items as newspapers and books is
primarily made of wood pulp, the currency paper made specifically for the Bureau of
Engraving and Printing (BEP) is composed of 75% cotton and 25% linen – with the security
thread and watermark built in. In India currency notes are made up of pulp containing cotton
and balsam with special dyes to make the currency notes that should be resilient, durable, with
quality to resist from wear and tear and not to be faked easily. The materials used in
the making of Indian currency notes have been starch paper blended with the textile fibers.
While making currencies, these papers are instilled with gelatin to give strength to the
currencies. Banknotes also consist of a watermark and thread compromising of fluorescent,
magnetic, metallic and micro print elements. Chinese were the first to make currency notes
and in ancient times Chinese currencies were made up of paper with mulberry bark and
currently Japan has been using this fiber to make Japanese Yen currencies. Sometimes the
shredded currency is also recycled to make files, calendars and paper weights and ballpoint
pen shells, tea coasters, cups and small trays as souvenirs for guests. The practice is similar in
the US: counterfeit banknotes are sent to the Secret Service, while unfit notes are shredded
and sent to landfills or given away as souvenirs to the public touring the Federal Reserve
Bank.
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