RBI stops printing Rs 2000 notes, focus turns to new Rs 200 notes

[Kool_SRG]

RBI hasn’t printed Rs 2000 notes for five months now, even as its Mysuru printing press stepped up printing of Rs 200 notes that are likely to be introduced next month

Mumbai: The Reserve Bank of India (RBI) stopped printing Rs 2000 notes about five months ago and is unlikely to print more in the current financial year, said people aware of the development. The central bank, however, has stepped up the printing of other denominations, including new Rs 200 notes, the people added on condition of anonymity.

 

About 3.7 billion Rs 2000 notes amounting to Rs 7.4 trillion have been printed, said one of the people cited above. That more than compensates for the 6.3 billion Rs 1000 notes that were withdrawn after Prime Minister Narendra Modi’s demonetisation move on 8 November 2016.

Most of the printing that’s being done, about 90% is only Rs 500 notes. Nearly 14 billion pieces of new Rs 500 notes have been printed so far,” this person said.

That is also close to the 15.7 billion of old Rs 500 notes (amounting to Rs 7.85 trillion) withdrawn from circulation after 8 November.

RBI data shows that currency in circulation stood at Rs 15.22 trillion as on 14 July, eight months after demonetization. This is about 86% of the Rs 17.7 trillion that was in circulation on 4 November.

 

Separately, RBI’s printing press in Mysuru has also started printing the new Rs 200 notes, which are likely to come into circulation next month, according to a second person.

“Initially, around a billion Rs 200 notes are expected to hit the market,” this person added.

The central bank did not respond to an email seeking comment.

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. The Economic Times first reported this shortage on 20 July.

“The cash crunch which existed till two months ago has now eased with RBI increasing supply of Rs 500 notes over the last 40 days,” said Neeraj Vyas, deputy managing director, State Bank of India (SBI). “But we have also seen a sharp drop in the supply of Rs 2000 notes during this period.”

RBI is possibly keeping the supply of Rs 2000 bank notes low because the central bank wants to get the right mix, according to SBI chief economist Soumya Kanti Ghosh. In the initial days of remonetisation, RBI had focused on Rs 2000 notes to quickly increase currency in circulation.

A 19 July report from SBI’s economic research wing showed that cash on hand with banks is high at 5.4% of currency in circulation compared with 3.8% pre-demonetisation. This shows that there is excess cash lying in ATMs or bank branches, most of which could mostly be Rs 2000 notes, concluded the report.

“Although we haven’t see any drop in supply of Rs 2000 notes, we expect it to be moved out of ATMs once Rs 200 notes hit the market,” said Radha Rama Dorai, country head, ATM and allied services, at ATM service provider FIS.

[Kool_SRG]

Opposition seeks clarity on whether government plans to scrap Rs 2,000 notes 
 

NEW DELHI: The Opposition in Rajya Sabha today asked Finance Minister Arun Jaitley to clarify whether the government has decided to scrap the newly launched Rs 2,000 note and introduce a Rs 1,000 coin. 

However, Jaitley who was present in the House, did not respond even as the Opposition members insisted for clarification from him on the issue. 
 

Raising a point of order during the Zero Hour, Naresh Agrawal (SP) said: "The government has taken a decision to scrap Rs 2,000 note. The RBI has been given order not to print the Rs 2,000 notes. ...If any policy decision been taken during the Parliament Session, the tradition is to announce it in the House." 

So far, the RBI has printed 3.2 lakh crore pieces of Rs 2,000 notes. "And now it has stopped printing... RBI cannot bully. One note ban has been done, the second one is being planned. Let the Finance Minister say...," he said. 

To this, Deputy chairman P J Kurien said "that is RBI's action." 

Agrawal then said that the earlier note ban decision was taken by the government and not the RBI. "The RBI board had opposed it but the government took the decision. The earlier decision (of demonetisation) was taken by the government, the second one is also from the government," he said. 

 

Echoing his views, Leader of Opposition Ghulam Nabi Azad too sought clarification from the government on whether it was planning to introduce Rs 1,000 coins. 

"Every day we read about a coin of 1,000, 100 and 200. What is the actual status? Are we to go by what media is writing? The House is to be enlightened by the Finance Minister. What is the truth," he asked. 

"Are we going to have coin of Rs 1,000. To carry coins, we have to purchase a bag? We must know. Our sisters have the purse. We shall also have to buy purse just to carry the coins of Rs 1,000 (denomination)," he said and added that there was no politics in this issue. 

Tiruchi Siva (DMK) said he cannot dispense with the media reports completely and sought clarification from the government on the issue. 

Sharad Yadav (JD-U) said the issue was serious as the rumours are strong. The government should clarify and stop the rumours or else people will start returning Rs 2,000 notes. 
 

 

 

 

[Heroin]

[Mitron]

Items la unnaru ga 

[Kool_SRG]

10 minutes ago, Mitron said:

Items la unnaru ga 

Ippudu already ATMs lo limited transaction allow chestunnaru , 200 & 500 notes only ante free transaction limit penchali baaga lekapote chukkale ika 

[lazybugger]

asalu ee govt em anukuntundo ento. oka game laaga treat chesthundi governance ni.

[Kool_SRG]

1 minute ago, lazybugger said:

asalu ee govt em anukuntundo ento. oka game laaga treat chesthundi governance ni.

[Mitron]

Just now, Kool_SRG said:

Ippudu already ATMs lo limited transaction allow chestunnaru , 200 & 500 notes only ante free transaction limit penchali baaga lekapote chukkale ika 

Lavadeke balls maa oorlo 50% ATM's close chesaru. 

5000 kosam 3 days tiriga.  Last ki bank ki velli 20k techi pettukunna. 

 

Evadochi atm lo deposit chestada ani padigapulu janalu evening aithe withdraw cheyyadaniki

 

[lazybugger]

1 minute ago, Mitron said:

Lavadeke balls maa oorlo 50% ATM's close chesaru. 

5000 kosam 3 days tiriga.  Last ki bank ki velli 20k techi pettukunna. 

 

Evadochi atm lo deposit chestada ani padigapulu janalu evening aithe withdraw cheyyadaniki

 

antha worst ga undha inka? demonetization ayyi 8 months ayyindi ga.

tomato enti nijanganey 100rs+ aa? ayna people not tiragabading aa?

[Kool_SRG]

2 minutes ago, Mitron said:

Lavadeke balls maa oorlo 50% ATM's close chesaru. 

5000 kosam 3 days tiriga.  Last ki bank ki velli 20k techi pettukunna. 

 

Evadochi atm lo deposit chestada ani padigapulu janalu evening aithe withdraw cheyyadaniki

 

Yes inka ATMs full fledged restore kaala even in major cities ee issue undi...

[lazybugger]

kaneesam oka spokesperson ochi, they should explain what the govt is doing, so normal people can make sense of it.

Not arrogant spokespersons like Nirmala sitaraman or Sambit patra. just a decent man/woman who knows how to smile in between sentences, and not speak as if he/she's on fire.

[Kool_SRG]

Just now, lazybugger said:

antha worst ga undha inka? demonetization ayyi 8 months ayyindi ga.

tomato enti nijanganey 100rs+ aa? ayna people not tiragabading aa?

Yes Tomato Kg Rs.100+ /- it will be so for another month or so... Tomato crop bit shortage antunnaru , one of the traders was mentioning demonetization hit the crop planting earlier...

 

Janalu em chestaru vaa Kg konukune vaadu paavu lekunte ara kg toh saripettukuntaaru...

[Heroin]

2 minutes ago, Kool_SRG said:

Yes inka ATMs full fledged restore kaala even in major cities ee issue undi...

[lazybugger]

1 minute ago, Kool_SRG said:

Yes Tomato Kg Rs.100+ /- it will be so for another month or so... Tomato crop bit shortage antunnaru , one of the traders was mentioning demonetization hit the crop planting earlier...

 

Janalu em chestaru vaa Kg konukune vaadu paavu lekunte ara kg toh saripettukuntaaru...

endho ee daridram.

[Mitron]

5 minutes ago, lazybugger said:

antha worst ga undha inka? demonetization ayyi 8 months ayyindi ga.

tomato enti nijanganey 100rs+ aa? ayna people not tiragabading aa?

endhi worst... Daridram ga edchindi.

Only metros lo issues lekunda unnayi.. at least i didn't had much issue in Hyd/Blr. but, mundu antha easy ga aithe ledu.

 

Inka district head quarters dani kinda unde cities aithe worst.. cheppaga maa oorilo 50% atms moosesaru ani.. inka chinna cities aithe mari darunam ga undi.