Nepal Rastra Bank (NRB) has brought an advanced money shredder to destroy old banknotes. Once shredded, the crinkles will be used to make briquettes, the bank has said.
NRB will use the money shredder to destroy old and counterfeit notes. So far, the unusable/invalid notes have been burnt. Now, they will go into the advanced machine and turn into shreds with use.
The bank is calling it Bank Note Shredding and Briquette System (BSBS) and set at the Bank’s Biratnagar office.
The regulatory banks destroy notes if they are counterfeit, badly damaged, old to stop their circulation. Burning, Shredding, and granulating are the most used methods to dispose of invalid notes.
The governor of NRB, Maha Prasad Adhikari formally kick-started the BSBS by switching it on.
The machine will displace the old practice of burning paper notes. It will instead, shred the notes and itself turn them into briquettes autonomously. Briquettes are combustible and can be used to keep warmth in winter. But briquettes can be used in bricks, paper, and coal factories, as well as for household purposes.
At the inauguration of the machine, the governor said the money shredder will be a stepping stone to make the bank’s operators modern and tech-friendly.
The bank has begun assessing the scope for the briquettes the BSBS will produce. The governor revealed that the bank will amend its policies into money shredding and draft its action plan.
Also read: Amid Crypto Farce, NRB Studies Prospect of Digital Currency
Capacity of NRB’s Money Shredder
NRB’s advanced money shredder comprises two sections. The first section shreds the old banknotes, the second will be responsible for turning the shreds into briquettes. The machine is capable of shredding notes made of cotton, polymer, and other materials.
Each turn, the machine can accommodate 200 kg of notes and shred 100 kg of them each hour. The shredded paper will be 6 mm in length. As per the bank, the BSBS system can be used for 1 thousand hours every year to its full capacity.
At the moment, the system is at the bank’s Biratnagar branch. But the bank has said, it will soon start using the money shredder at Janakpur, Birgunj, Pokhara, Nepalgunj, Dhangadhi, and other areas too.
Check out: Digital Lending in Nepal; NRB releases guidelines
How do you like the idea of NRB disposing of the old banknotes and turning them to good use? Do add your perspective in the comments below.