The replacement of old ₹500 and ₹1000 notes by new ₹500 and ₹2,000 notes will cost Reserve Bank of India a whopping ₹12,000 crores. The cost is an estimation based on the printing and circulation charges.
Data retrieved from Right to Information from RBI shows that it costs ₹2.50 to print a ₹500 note. ₹3.17 is the cost to print a ₹1000 note. This indicates that the Central Bank has to spend ₹3,917 crores to print 1567 crores ₹500 notes and ₹2000 crores to print 632 crores ₹1000 notes in circulation currently.
The data is calculated Assuming that the price for printing a ₹2000 note is equal to price for printing a ₹1000 note., the cost will run ₹12,000 crores. However the actual expenditure may increase.
In total, removing the old notes and replacing them with the new Rs. 500 and Rs. 2,000 notes will cost the central bank a total of at least Rs. 12,000 crore. However, this figure is likely to go up since additional security measures will add to the cost of printing.
The Rs. 3.17 it costs to print a Rs. 1,000 note is the highest in absolute terms across denominations, but it is the lowest when compared to the face value of the note.
For example, a Rs. 10 note costs only Rs. 0.48 to print, but that works out to 9.6 per cent of the face value of the note. Printing a Rs. 10 note costs 10 per cent of what that note is worth. Whereas this, for a Rs. 1,000 note, is 0.3 per cent.