Context:
The Reserve Bank of India (RBI) is undertaking a project to modernize its currency management infrastructure, focusing on enhancing efficiency, security, and automation.
Key Features
- Advanced Storage & Handling: Upgraded facilities to manage the increasing volume of banknotes and coins.
- Automation & Efficiency: Implementation of warehouse automation and inventory management systems.
- Security Enhancements: Strengthening surveillance and security measures for currency handling.
- Centralized Command Center: Establishing a hub to coordinate nationwide currency management.
Why Now?
- Although the growth of Notes in Circulation (NIC) has moderated, cash usage is still expected to rise, necessitating infrastructure upgrades.
- The RBI seeks to reduce costs, improve security, and streamline operations, aligning with global best practices.
Global Benchmarking
Countries like the U.S., Japan, Germany, and Malaysia have undertaken similar initiatives to modernize their currency management systems.
Selection Process
- RBI received 11 Expressions of Interest (EoIs) and shortlisted six entities:
- Engineers India Limited (EIL)
- MECON
- Accenture Solutions
- Colliers International (India) Property Services
- PricewaterhouseCoopers
- The Boston Consulting Group (India)
- These firms will now move to the Request for Proposal (RFP) stage.
By modernizing its currency management, the RBI aims to enhance operational efficiency, security, and resilience, ensuring India’s readiness to meet future cash demands.
Source: BS
