It costs money to make money. Last year, the Reserve Bank of India spent Rs 2,376 crore on printing 16.5 billion currency notes of varied denominations and the tab is only set to rise.
Of all the notes minted, Rs 1,000 costs the least, at Rs 3.17 per note. But the five-rupee note, the smallest in terms of size and denomination, costs the most, 48 paise, compared to the value of the note.
The number of notes printed has risen consistently. "Inflation remained high, often in double digits, in respect of commodities such as foodgrain, pulses, fruits and vegetables, and milk during 2009-10 and 2010-11 - where transactions are expected to be cash- intensive," the RBI said in its annual report for 2010-11.
"The size of our currency notes has shrunk over time, probably because of the rising cost of paper. Yet, we maintain different dimensions and colours for different denominations," said Dilip Rajgor, scholar and the author of several books on numismatics.
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