RBI could be holding back or has stopped printing Rs 2000 notes

Mangalore Today News Network

New  Delhi, Dec 21, 2017 : The Reserve Bank of India (RBI) may either be holding back Rs 2,000 notes or could have stopped printing them as there is a surfeit of these notes in circulation which is creating problems in carrying out day-to-day transactions, according to an SBI Research report released on Wednesday.

 

Juxtaposing the data presented in the Lok Sabha recently with the one provided by RBI in its annual report earlier, the SBI Ecoflash report observes that the value of small denomination currency in circulation up to March 2017 was Rs 3,501 billion.

This implies that the value of high denomination notes was equivalent to Rs 13,324 billion as on December 8, after netting out the small denomination notes from the currency in circulation on that day, it said.

The report further said that as per the finance ministry, the RBI has printed 16,957 million pieces of Rs 500 notes and 3,654 million pieces of Rs 2,000 notes as on December 8. The total value of such notes translates into Rs 15,787 billion.

This means that the residual amount of high currency notes of Rs 2,463 billion may have been printed by the RBI but not supplied in the market, said the report authored Soumya Kanti Ghosh, group chief economic adviser, SBI.

RBI must have also printed notes of small denomination of Rs 50 and Rs 200 in the interregnum.

As a logical corollary, RBI may have either consciously stopped printing the 2000 denomination notes or is printing them in smaller numbers after initially it was printed in ample amount to quickly normalise the liquidity situation after demonetisation, the Ecoflash report states. This also means that the share of small currency notes in total currency in circulation now may have touched 35 per cent in value terms, it added.



courtesy:Yahoo