New Delhi, November 28: The new currency notes, issued post demonetisation drive of 2016, are becoming "unusable" due to "low-quality paper" used, said a report in a leading Hindi daily. As per the banking definitions, a currency is deemed unusable if cannot be detected by ATM sensors.

Normally, a note used for more than a decade turns unusable after being soiled or teared. Such legal tenders are subsequently sent to the Reserve Bank of India (RBI) which destroys them after declaring it as "non-issuable". 50 Per Cent ATMs in India to be Shut: Demonetisation Period-Like Cash Crunch Likely by March 2019.

According to a report in Amar Ujala, the notes of Rs 500 and Rs 2,000 are turning unusable due to the alleged inferior quality of paper used vis-a-vis the old currency notes. The matter has raised concern as these notes were issued barely two years ago, following the shock demonetisation order.

Apart from the higher currency notes, the Rs 10 notes issued earlier this year are also being tagged as unusable by commercial banks.

A senior Finance Ministry official, while speaking to Amar Ujala, denied the charge of low-quality paper used in the new notes. On the contrary, he claimed that the government made no compromise on the quality of currency.

Pinning the blame on common populace, the official said some of the notes have been damaged due to their rough usage. "The new notes are becoming unusable because users in India keep the currency folded or tie it with saree or dhoti," he was quoted as saying.

In wake of large number of currency notes being sent to the RBI by commercial banks after finding them "unusable," the central bank had barred the lenders from categorising new notes under the non-issuable category. The order was rescinded in July 2018, after backlash from the banks.

(The above story first appeared on LatestLY on Nov 28, 2018 06:05 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).