RBI steps up printing of Rs200 notes, stops printing Rs2,000 notes
26 July 2017
The Reserve Bank of India (RBI) has stepped up printing of Rs200 notes and stopped printing of Rs2, 000 notes after printing 3.7 billion of the high value notes for an aggregate amount of Rs7,40,000 crore.
RBI's printing press in Mysuru has now stepped up printing of the lower denomination Rs200 notes that are likely to be introduced next month.
RBI is reported to have stopped printing Rs2,000 notes five months ago and is unlikely to print more in the current financial year, even as sources close to the development said the central bank is now focused on printing other denominations, including new Rs200 notes.
The amount of money in the form ofRs2,000 notes now more than compensate the 6.3 billion Rs1,000 notes of a total value of Rs6,30,000 crore were withdrawn in the 8 November demonetisation drive .
''Most of the printing that's being done, about 90 per cent is only Rs500 notes. Nearly 14 billion pieces of new Rs500 notes have been printed so far,'' say reports.
That is also close to the 15.7 billion of old Rs500 notes (amounting to Rs7,85,000crore) withdrawn from circulation after 8 November.
RBI data shows that currency in circulation stood at Rs15,22,000 crore as on 14 July, eight months after demonetization. This is about 86 per cent of the Rs17,70,000 crore that was in circulation on 4 November.
RBI will now be printing more Rs200 notes to bridge the shortfall. These are likely to come into circulation next month.
RBI, meanwhile, has decided to add additional security layer to the new currency to check counterfeit. Quality checks have already been done on the new currency.
As lower denomination notes is floated to ease transaction, government is also preparing for the gradual reduction of Rs2,000 notes introduced last year.