In 2009-10, RBI incurred annual costing Rs. 2800 Crore to just print currency notes. This is 0.4% of the total currency in circulation. This cost does not include the cost of storage, transportation, security, detection of counterfeits, etc.To the printing cost, if we were to add the cost of storage and maintaining these currencies through ATMs alone, the cost of printing and distributing cash constitutes about 0.2% of India’s GDP. Given the growth rate in the volume of currency, the cost of printing and distributing will soon become enormous. In the face of this, a moderate growth of cashless transactions ....
