THIS Prime Minister decided to print Indian currency in foreign country, the decision was taken in…

In 1997, the Indian government realized that not only was the country’s population growing, but economic activities were also increasing.

New Delhi: It was during the late 1990s when the Indian government, under the then prime minister H.D Deva, decided to print currency notes aboard. The decision was taken in such a discreet manner that the country remained unaware of it for a long time. It was the first time the government had decided to get Indian currency printed abroad. After that, for years, the Indian rupee was printed overseas and brought into the country.

In 1997, the Indian government realized that not only was the country’s population growing, but economic activities were also increasing. To address this, more currency was needed to maintain the flow in the Indian economy. India’s two currency printing presses were insufficient to meet the rising demand.

In 1996, H.D Deva Gowda became the Prime Minister under the United Front government. Deve Gowda decided to print Indian currency abroad. This was the first and last time after independence that Indian currency had to be printed in a foreign country.

Printing Was Done in Multiple Countries

The Indian government, after consulting with the Reserve Bank of India, decided to get Indian currency notes printed by companies in the USA, Canada, and Europe. For several years, a significant portion of Indian currency notes was printed abroad. This was a very expensive deal, costing India several thousand crore rupees.

Security Risks Were Also a Concern

It is said that the government had decided to print 360 crore currency notes abroad at that time, which cost around USD 9.5 million. This move faced severe criticism, and concerns were raised about the security risks to the country’s currency. As a result, the practice of printing notes abroad was soon discontinued.

Here are some of the key details:

• In 1996, H.D. Deva Gowda became the Prime Minister under the United Front government. Deve Gowda decided to print Indian currency abroad.
• The Government of India has decided to open two new currency presses.
• In 1999, a currency printing press was established in Mysore, followed by another in Salboni (West Bengal) in the year 2000.
• To meet the demand for currency paper, a Security Paper Mill was set up in Hoshangabad in 1968, with a production capacity of 2,800 metric tons.
• However, this capacity was not sufficient to meet the total demand for currency production, so India had to import the remaining paper from Britain, Japan, and Germany.
• To fulfill the growing demand, a new production line was added in Hoshangabad, and the second printing press in Mysore started operations.
• The entire demand for currency paper is met domestically now.
• The paper used for ₹500 notes is manufactured in India.
• The special paper for the discontinued ₹2000 notes was also produced here.
• Until recently, a significant portion of the paper used in Indian banknotes was imported from Germany and Britain.

90 years ago, the first currency printing press in India was established in Nashik. Back then, the British started printing currency here. After independence, all Indian banknotes were printed from this location. A significant portion of the currency paper and ink was imported from foreign countries, but now the government claims that the production of all these essential materials has started within the country itself.