Are currency notes carriers of COVID-19? This is what RBI says

The Reserve Bank of India (RBI) has said that currency notes are potential carriers of coronavirus COVID-19 and said that incentives must be announced by the government to encourage digital payments, as per the Confederation of All India Traders (CAIT). 

On March 9, 2020, CAIT had written a letter to Union Finance Minister Nirmala Sithraman seeking clarification whether or not currency notes are carriers of bacteria and viruses. The letter was forwarded by Finance Ministry to the Reserve Bank of India. In its reply, RBI has said that currency notes could be carriers of bacteria and viruses, including coronavirus, as per a report in IANS.

CAIT National President BC Bhartia and Secretary General Praveen Khandelwal said the reply from RBI hints that the currency notes do carry viruses and bacteria and this is the main reason why use of digital payments should be encouraged to avoid handling of currency notes.

"Bank charges levied for digital transactions should be waived and the government should give subsidy directly to the banks in lieu of bank charges. In due course, such subsidy will not be a financial burden on the government; on the other hand, it will minimise the expenses incurred on printing of bank notes," CAIT said in a statement.

The RBI further stated that "in order to limit the coronavirus pandemic, the public can make payments by sitting at homes through various online digital channels like mobile and Internet banking, credit and debit cards etc and avoid using or withdrawing cash to the extent possible".

The CAIT also said that the RBI also said in its annual report released on August 29, 2019 had mentioned that "the value and volume of notes in circulation increased by 17 per cent and 6.2 per cent to Rs 21,109 billion and 108,759 million pieces respectively during 2018-19".

"In value terms, the share of Rs 500 and Rs 2,000 notes, which had together accounted for 80.2 per cent of the total value of notes in circulation at the end of March 2018 had increased to 82.2 per cent by the end of March 2019."