Post the demonetization, the efforts put by central government and RBI are just beyond words. With the very new patterned currency notes and new methods, until now, RBI has managed to fill the voids caused by the discrepancy in implementing the idea of demonetizing the old notes.
Despite the RBI’s extreme efforts in filling in the gaps, recent reports claimed that there’s still a minimum percentage of the gap that must be filled with some or other form of currency notes. So, in a bid to do this, RBI has introduced the Rs 200 notes.
This introduction of the new denomination will help fill the huge demand for cash across the nation. Following the series of various implications regarding filling the noted gap. RBI finally made an official announcement on terminating the printing of Rs 2000 notes.
Sources claim that as of now, about 3.7 billion Rs 2000 notes amounting to Rs 7.4 trillion have been printed. That more than compensates for the 6.3 billion Rs 1000 notes that were withdrawn after Prime Minister Narendra Modi’s demonetization move in November.
A second person from the office shared, “Most of the printing that’s being done, about 90% is only Rs 500 notes. Nearly 14 billion pieces of new Rs 500 notes have been printed so far.”
This implies that approximately the Rs 500 notes amounting to Rs 7.85 trillion are been withdrawn from circulation after demonetization. RBI data shows that currency in circulation stood at Rs 15.22 trillion as on 14 July, eight months after demonetization. This is about 86% of the Rs 17.7 trillion that was in circulation on 4 November.
On the other hand, with no official announcement, in the beginning, RBI’s printing press in Mysuru has also started printing the new Rs 200 notes, which are likely to come into circulation next month, according to a second person.
“Initially, around a billion Rs 200 notes are expected to hit the market,” the source added.
Though the Central Bank didn’t respond to the queries regarding the same, the new batches of Rs 500 notes are expected to ease the shortage of Rs 2000 notes in circulation that is being reported in certain parts of the country.
Neeraj Vyas, deputy managing director at State Bank of India (SBI) was quoted saying, “The cash crunch which existed till two months ago has now eased with RBI increasing supply of Rs 500 notes over the last 40 days, but we have also seen a sharp drop in the supply of Rs 2000 notes during this period.”
A Recent report from the SBI’s economic research wing revealed that the on hand cash with banks is high at 5.4% of currency in circulation compared with 3.8% pre-demonetisation. This shows that there is excess cash lying in ATMs or bank branches, most of which could mostly be Rs 2000 notes.
Detailing the above, Radha Rama Dorai, country head, ATM and allied services, at ATM service provider FIS has said, “Although we haven’t seen any drop in supply of Rs 2000 notes, we expect it to be moved out of ATMs once Rs 200 notes hit the market.”