HOW MONEY TRAVELS: PRESS TO PURSE

■ The RBI chalks out the requirement for currency notes before the start of the financial year

■ The requirement is then communicated to the government ■ When the Centre gives permission to the RBI, the central bank raises ‘indent’ or order for printing specific banknotes to four presses ■ Papers for banknotes were earlier procured from overseas, but now the material is supplied locally ■ The security features are installed by the mills first and then sent to the printing presses

■ The printed notes,with additional security features, are sent to the RBI’s 19 regional offices ■ There are also 4,000 currency chests where the notes are kept ■ The RBI then raises a voucher for the notes needed

■ Banks raise their demand for cash with the RBI’s regional offices ■ The RBI then sends money to banks ■ Banks keep the money in their currency chests and engage cash management firms to fill the ATMs ■ ATM service providers do a daily calculation of cash required at night for the next day called indent ■ Banks validate the indent and the cash is transferred to the bank branch linked to that ATM ■ These bank branches generate their own cash and in case of shortage, they borrow from currency chest ■ Cash management firms transfer cash from branches to ATMs

■ The firms fill up the ATMs with four cassettes, which can hold up to 2,500 notes each

■ The money is dispensed when customers use their card