SPMCIL sources said that since the printing of the new Rs 500 notes began, 2-5 percent of defective notes have also been printed but were not segregated from the normal ones. Consequently, they are now among the new notes in circulation.

The Quint reported on 28 November that the extreme shortage of the new Rs 500 notes, printing errors, outdated machinery, and low rate of printing at SPMCIL’s Dewas unit has forced the government to order additional printing of the high-value currency note at the Mysuru press, which is operated by the Bharatiya Reserve Bank Note Mudran Ltd (BRBNML), a wholly-owned subsidiary of the Reserve Bank of India.

When contacted, RBI spokesperson Alpana Killawala said she could not comment as “Dewas comes under the Finance Ministry.” Multiple attempts to contact Dewas SPMCIL General Manager NC Velappa over the phone failed. Commenting on The Quint’s report, Government of India spokesperson, PIB Director General Frank Noronha, said: “It is absolutely incorrect and there is no truth in it.”

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