New plans to reduce currency circulation
Posted on: 09/Jun/2016 10:03:17 AM
The Reserve Bank of India is spending about Rs. 4000 Crore per year to print currency notes.
In order to reduce this expense and also to reduce the circulation of black money and fake currency notes,, the Reserve Bank of India is set to introduce money transactions through Smart Phones.
Accordingly, the National Payments Corporation of India has created a new scheme for money transactions, known as UPI (Unified Payment Interface).
In the 1st Phase of the scheme, 19 banks have been linked. Through this arrangement, payments can be made much faster than the usage of credit/debit cards or mobile transactions.
It is expected that once this new scheme is implemented, the demand for currency notes will come down.
