RBI stops printing Rs 2,000 notes; Rs 200 note may hit market next month

RBI reportedly already started printing the primary batch of two hundred rupee note in June to ease out currency convenience within the country.

The banking concern of Republic of India (RBI) has stopped printing the Rs 2,000 currency notes and can not be transfer new notes of that denomination within the current fiscal year, in keeping with a Live mint report on Tues.

Officials of the financial institution reportedly told the newspaper that the tally had additionally accelerated the method of printing the Rs 200 currency notes. The new notes are expected to start out current by next month.

"About 3.7 billion Rs 2,000 notes, amounting to Rs 7.4 100000 large integer, are printed; that overcompensates for the 6.3 billion Rs 1,000 notes that were withdrawn once termination on eight Gregorian calendar month 2016," Live mint aforementioned, citing AN tally supply.

The tally has reportedly already started printing the primary batch of Rs 200 note in June to make sure simple currency convenience within the country.

In fact a report by SBI even says that the introduction of Rs 200 note can fill within the "missing middle" whilst the new currency in circulation (CIC) has already reached 84 per cent of the pre-demonetisation level.

The 19 July report from SBI’s economic analysis wing showed that money reachable with banks was high at 5.4 per cent of currency in circulation, compared with 3.8 per cent before ending. This shows that there's excess money lying in ATMs or bank branches, most of that might largely be Rs 2,000 notes, in keeping with the report.

The SBI report noted that although there had been a big move towards reallocating the distribution of currency towards smaller denominations once ending, there was a mate caused by the presence of Rs 2,000 denomination straight once Rs 500.

The new notes of Rs 200 ought to be out before the tip of 2017 and would greatly facilitate slim the demand-supply gap in smaller-denomination currency bills, it said.

Besides, AN ATM machine generally holds 10,000 bills and if these were to comprise, say, solely Rs 100 notes, the amount and price of replacement would go up considerably.

"Herein lies the contradiction. Notes of Rs 2,000 denomination in ATMs could realize few takers attributable to the missing middle/Rs 200 note," the report aforementioned.

Last week, the Economic Times had rumored that eight months once ending and therefore the introduction of latest currency notes, bankers felt there was currently a visit the circulation of Rs 2,000 notes. The report had further that the provision of Rs 2,000 notes from the tally had declined recently, resulting in the speculation that there may well be a deliberate attempt to limit the provision of those notes.

State Bank of Republic of India Chief operational Officer Neeraj Vyas had told ET, "We are receiving currency notes from the banking concern within the denomination of Rs 500 in high-value currency”, which the Rs 2,000 notes were solely coming back in as a results of recirculation.

Business normal had earlier this month rumored that tally would issue the new Rs two hundred notes to do the shortage of low-denomeination notes, in some components of the country.

“It also will facilitate in larger transactions. you'll offer amendment for Rs 2,000 in 10 Rs 200 notes instead of 20 Rs 100,” aforementioned an officer, adding that the notes ought to be in circulation by the tip of 2017.

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