RBI should use Indian paper, ink to print currency: Modi

Prime Minister Narendra Modi wants the Reserve Bank to use Indian paper and ink to print currency notes and set a target date for achieving the objective as part of the 'Make In India' campaign.

"Today we are celebrating 80 years of RBI. Can we not fix a date...that on any specific date, whatever currency is being printed, paper will be Indian and ink will also be Indian," he said at the 80th anniversary celebrations of the Reserve Bank.

It is ironic that the photograph of Mahatma Gandhi, who fought for swadeshi, appears on currency printed on imported paper, Modi said.

'Make In India', the Prime Minister said, "should start from here. I believe we can do this".

Later, RBI Deputy Governor S S Mundra said work on a factory manufacturing currency paper was in advanced stages and the country would soon have notes printed on Indian paper.

"The factory construction is in advance stages and we are confident that in the next few months, RBI will start producing bank notes," Mundra said.

India imports the paper and ink, and then prints the notes at dedicated facilities. According to experts, use of indigenous paper and currency would also help in curbing counterfeiting of the notes.

According to the information provided by RBI, India prints 2,000 crore currency notes every year and 40 per cent of the cost goes towards import of paper and ink. It mainly imports paper from countries like Germany, Japan and the UK.