Reserve bank of india stops 2000 notes printing

The Reserve Bank of India (RBI) has quit printing the Rs 2,000 money notes and won’t be getting new notes of that category the current monetary year, as indicated by a Livemint give an account of Tuesday. Authorities of the national bank supposedly told the newspaper that the RBI had additionally quickened the way toward printing the Rs 200 currency notes.
The new notes are relied upon to begin circling by one month from now. Around 3.7 billion Rs 2,000 notes, adding up to Rs 7.4 lakh crore, have been printed; that more than makes up for the 6.3 billion Rs 1,000 notes that were pulled back after demonetization on 8 November 2016,” Livemint stated, refering to a RBI source.
The RBI has purportedly as of now began printing the first batch of Rs 200 note in June to guarantee simple cash accessibility in the country. Truth be told a report by SBI even says that the introduction of Rs 200 note will fill in the “missing middle” even as the new cash available for use (CIC) has just come to 84 percent of the pre-demonetisation level.
The 19 July report from SBI’s financial research wing demonstrated that money available with banks was high at 5.4 percent of cash available for use, contrasted and 3.8 percent before demonetisation. This demonstrates there is overabundance trade lying out ATMs or bank offices, a large portion of which could for the most part be Rs 2,000 notes, as indicated by the report.
The SBI report noticed that however there had been a huge move towards reallocating the distribution of money towards smaller denominations after demonetisation, there was a mismatch caused by the nearness of Rs 2,000 section straight after Rs 500. The new notes of Rs 200 ought to be out before the finish of 2017 and would enormously help limit the request supply crevice in smaller-denomination cash bills, it said. In addition, an ATM machine commonly holds 10,000 bills and if these were to include, say, just Rs 100 notes, the number and cost of renewal would go up fundamentally.
In this lies the paradox. Notes of Rs 2,000 section in ATMs may discover couple of takers on account of the missing center/Rs 200 note,” the report said. A week ago, the Economic Times had announced that eight months after demonetisation and the presentation of new money notes, bankers felt there was currently a drop in the circulation of Rs 2,000 notes.
The report had included that the supply of Rs 2,000 notes from the RBI had declined as of late, prompting the theory that there may be a deliberate plan to limit the supply of these notes. State Bank of India Chief Operating Officer Neeraj Vyas had told ET, “We are getting cash notes from the Reserve Bank in the category of Rs 500 in high-esteem money”, and that the Rs 2,000 notes were just coming in because of distribution.
Business Standard had not long ago revealed that RBI would issue the new Rs 200 notes to hold over the lack of low-denomeination notes, in a few sections of the country. It will likewise help in greater exchanges. You can give change for Rs 2,000 out of ten Rs 200 notes as opposed to twenty Rs 100 notes,” said an authority, including that the notes ought to be available for use before the finish of 2017.