RBI Contradicts SPMCIL

There is a tussle between Centre and RBI. Finance Ministry wants RBI to release
Rs.3.6 lakh crores out of Rs.9.59 lakh crores reserve held by RBI. The Board of
the Central Bank has protested on the ground that they just not print money,
but earns interest on money by lending to Banks or on investment it makes.
Secondly, while Central Bank wants to be strict on lending; Govt. wants to
reduce the stricture for growth.

It is experienced that neither RBI nor the Government is transparent on key
issues. RBI has not yet disclosed the names of willful defaulters who have taken
loans for Rs.50 crores and above for which a show cause notice has been issued
by CIC to RBI Governor Shri Urjit Patel to show cause why maxim penalty should
not be imposed on him for “dishonoring” Hon’ble Supreme Court judgement.
The PMO is not making public the letter of former RBI Governor Shri Rajan in
the matter. Regarding estimate for Printing and Minting money, RBI CONTRADICTS SPMCIL (a Miniratna corporate of Gov. of India). The estimates are kept secret although money circulation is in public domain.

To my RTI question, the Security Printing and Minting Corporation of India Limited
(SPMCIL), vide their letter No.CHO (HR)/RTI/10-8/2016/1272 dated 24-5-2016,
responded as under:

“Four Mints (i.e. India Govt. Mint, Hyderabad/Noida / Kolkata/Mumbai) and two
currency presses (i.e. Bank Note Press, Dewas & Currency Note Press, Nashik) under (SPMCIL) undertakes the job of Minting of 1, 2, 5 and 10 rupee coins and printing of Banknotes of Rs.1, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000 as per RBI indent which is agreed during Production Planning Meeting in the
Ministry. After Minting/Printing, they are handed over to RBI for further
circulation. “

It may be observed that printing of Banknotes of Rs.2 and Rs.5 are omitted.
There is no clarity in subsequent letters from the Printing Press nor from RBI.

Regarding indent, Currency Management Department of RBI, Central Office,
Mumbai-400001 responded vide their letter No. 664/06.08.05/2016-17 dated 12 th September, 2016 (RIA No.52231-2016-2017) to my another query stating , “The
Reserve Bank of India does not send indent of Notes and coins to Security
Printing and Minting Corporation of India Ltd., New Delhi” clearly contradicting
SPMCIL’s above reply dtd 24-5-2016.

Moreover RBI has declined to supply a copy of the RBI’s latest indent and copy of
latest minutes of the Production Planning Committee meeting of the Ministry
taking plea under section 8(1)(a) of RTI Act, 2005. According to this section,
“there shall be no obligation to give any citizen information, disclosure of
which would prejudicially affect the sovereignty and integrity of India, the
security, strategic, scientific or economic interests of the State, relation with
foreign State or lead to incitement of an offence.” The money circulation with public is always in public domain. So maintaining secrecy for estimation and indent taking plea u/s 8(1)(a) is not understood.

Bhawani Sankar Nanda – nanda.bhawani@gmail.com M-9937105006

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