Published: Sat, July 29, 2017
Economy | By Melissa Porter

RBI set to unveil new

RBI set to unveil new

Reserve Bank of India (RBI) has stopped printing of Rs 2,000 notes and are working to increase the production of smaller bills, which also includes new notes of Rs 200.

The government planned to print the lower denomination note to ease the transaction, and also the government is preparing to decline Rs 2000 notes, which were introduced past year.

Will the new Rs. 200 note tide over the cash crunch from demonetization?

The RBI is also reportedly printing new batches of Rs 500 notes, which are expected to compensate for the Rs 2,000 notes in circulation.

According to a report in a leading economic daily, RBI officials have sped up the process of printing Rs 200 notes, which are expected to hit the banking system next month.

The introduction of low denomination currencies helps in the easy transaction of the amount and exchange of amount among the public.

RBI had recently announced the introduction of Rs 200 notes in an effort to ease the shortage of smaller denomination notes. "So we are on track to meet the deadline to introduce 200-rupee notes by next month", said a source, who is part of the government's investment and currency department. "Almost 14 billion pieces of new 500-rupee notes have been printed so far", said the report quoting a person familiar with the development.

According to sources privy to the matter, 2000 rupee notes of total value Rs 7.4 trillion have been printed. Further, it suggested about the excess amount of cash lying in ATMs and bank branches mostly in the form of Rs 2000 notes. Which was 3.8% before demonetization.

The finance ministry took a decision in March to print the 200-rupee notes. "Bankers and ATM service providers say that there has been a sharp drop in the number of Rs 2,000 notes in circulation".

The Indian economy is likely to see circulation of new currency notes in yet another move to curb black money and also to strike a balance between the circulation of present ones.

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