RBI to release Rs. 200 notes: Rs. 2000 notes printing stopped.
Since five months, RBI has not printed the Rs. 2000 notes and has now moved to print Rs. 200 notes, from its Mysuru Printing press, and these are expected to hit the market by next month.
Along with printing of other notes, RBI has now stepped up printing of Rs. 200notes, as per reports available. Further statistics reads as under:
- Approx 3.7 billion Rs 2000 notes for a value of 4 trillion have been printed, to offset 6.3 billion Rs 1000 notes which were withdrawn after the Government’s demonetisation move on 8 November 2016.
- Out of the new notes printed so far, around 90 per cent accounts for Rs. 500 notes which accounts for around 14 billion pieces.
- Also, this figure is near to the figure of 15.7 billion of old Rs 500 notes (amounting to Rs 7.85 trillion) which was withdrawn from circulation after 8 November 2016.
- RBI data shows that currency in circulation is Rs 15.22 trillion as on 14 July, eight months after demonetization. This forms around 86% of the Rs 17.7 trillion that was in circulation on 4 November.
- One billion new Rs 200 rupee notes is likely to hit the market next month.
- 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.
- Also the statistics adds that with increase in supply of Rs. 500 notes, there is a sharp decrease in Rs. 2000 notes supply.
- It is believed that RBI has reduced the supply of Rs 2000 bank notes since it has plans to get the right mix.
- Further cash on hand with banks is high at 5.4 per cent of the currency in circulation, which was 3.8 per cent before demonetisation. This reveals that there is excess cash in ATMs or Bank branches, which mostly consists of Rs. 2000 currency notes.
- It is also expected that once Rs. 200 notes are released the Rs. 2000 notes are likely to be moved out of the ATMs.