Old banknotes become heating material in Nepal

KATHMANDU: MARCH. 22 – Banknotes that have been out of circulation in Nepal are still being used to benefit the people, this time as a heating fuel in recent months.

Since August of last year, the Nepal Rastra Bank, the country’s central bank, has been converting old and worn-out banknotes into briquettes used for heating instead of simply burning them.

“The notes that used to become ashes after being burned have now become a source of income for us,” Revati Prasad Nepal, the bank’s chief of currency management, explained.

Last year, the central bank purchased eight machines from the Netherlands to set up a banknote shredding and briquetting system at its headquarters and six of its seven provincial offices. In August of last year, it began producing briquettes in limited quantities.

“We’ve been producing around 1,500 kg of briquettes per day from various offices,” Nepal explained. “We’re also selling them in limited quantities as a pilot project right now. We’re looking for bulk buyers for briquettes.”

To operate the furnaces under the new system, the central bank is employing personnel who are currently involved in the burning of banknotes.

Nepal believes the banknote shredding and briquetting system is helpful in controlling pollution, a constant concern among the public.