The Reserve Bank of India (RBI) is now planning to reuse old, torn, and out-of-circulation notes in an environmentally friendly manner, rather than simply destroying them by burning or melting. In its recent annual report, the RBI stated that these notes will now be used to manufacture particle boards, which can be utilised to produce chairs, tables, and other types of furniture.
How Was The Disposal Done Till Now?
Every year, the Reserve Bank receives more than 15,000 tonnes of such notes, which are taken out of circulation due to being old, torn or other reasons. Until now, these notes have been destroyed either by burning or by rotting. This process was not only expensive but also environmentally harmful.
What Will Change Now?
The RBI has now contacted companies that manufacture particle boards. Under the scheme, the Reserve Bank will convert these damaged notes into fine shreds and sell them to these companies. This will provide companies with cheap and durable raw materials, while also decreasing the cost of destruction for the RBI. This process will also generate additional income for the bank.
Beneficial From The Environmental Point Of View
RBI has taken this step in the interest of the environment. To date, the process of burning notes or disposing of them in landfills has been considered environmentally harmful. Therefore, the bank commissioned a study on this subject from the Institute of Wood Science and Technology, under the Union Ministry of Environment, Forests, and Climate Change. In the study, it was found that the scraps of old notes can be effectively used in the manufacture of particleboard.
What Is Particleboard?
Particleboard is a type of engineered wood, which is prepared by mixing wood scraps, sawdust or other fibres with glue and resin. Now it will also include scraps of old notes, from which durable furniture, such as chairs, tables, and cupboards, can be made.
