Find Rs 200 notes in your wallet by August, RBI stops printing Rs 2000 notes
Reports suggest supply of Rs 2,000 notes from the RBI had been declining as it finds few takers.
Mumbai: Days after the Reserve Bank of India (RBI) announced the rollout of Rs 200 notes, media reports suggest that the central bank has stopped the printing of Rs 2,000 notes that were introduced post demonetisation in 2016.
RBI had recently announced the introduction of Rs 200 notes in an effort to ease the shortage of smaller denomination notes. According to a report in Livemint, RBI officials have sped up the process of printing Rs 200 notes, which are expected to hit the banking system next month. "About 3.7 billion Rs 2,000 notes, amounting to Rs 7.4 lakh crore, have been printed; that more than compensates for the 6.3 billion Rs 1,000 notes that were withdrawn after demonetization on 8 November 2016," said an RBI official.
A report in the Economic Times had suggested that eight months after demonetisation, there was a drop in the circulation of Rs 2,000 notes. Moreover, it said that the supply of Rs 2,000 notes from the RBI had also been declining.
State Bank of India (SBI), had in a recent report stated, that the amount of cash lying with banks currently, is 5.4 per cent of the currency in circulation as compared to the 3.8 per cent before demonetisation. It had further suggested that there is excess cash lying in ATMs or in bank branches, mostly in the form of Rs 2,000 notes. The larger denomination notes were not finding takers.
The research report by SBI had also implied that although there was a demand for smaller denomination currencies, there was discrepancy in the banking system due to the presence of Rs 2,000 notes straight after Rs 500 notes. SBI had said the introduction of Rs 200 notes would fill in as the ‘missing middle’.