The Reserve Bank of India (RBI) has reportedly stopped the printing of Rs 2000 currency notes and the new Rs 200 notes are likely to be introduced next month. Mint on Wednesday reported sources as saying that printing of Rs 2000 notes was stopped around five months ago and the government is unlikely to print more Rs 2000 notes.
The Mint report comes around 9 months after demonetisation announcement and the introduction of Rs 2000 notes by the RBI. It says that the RBI has speeded-up the printing of new Rs 200 currency notes and other denominations. According to Mint, the source said that the RBI has already printed around 3.7 billion Rs 2000 notes to compensate for the 6.3 billion Rs 1000 notes that were deemed illegal on November 8, 2016 in a surprise demonetisation announcement by PM Narendra Modi.
However, all new notes have not been released in the market. Mint also reported another source as saying that printing of Rs 200 note has started at Mysuru press of RBI and it is likely to come in circulation August.
Why Rs 200 notes?
It is believed that the circulation of Rs 2000 notes will decline after the introduction of Rs 200 notes.
PTI reported on July 23 that introduction of Rs 200 note will fill in the “missing middle” even as the new currency in circulation (CIC) has already reached 84 per cent of the pre demonetisation level. It said that RBI had “put order” for the printing of Rs 200 notes.
State Bank of India Ecowrap report found that a mismatch was caused by the presence of Rs 2,000 denomination straight after Rs 500 denomination. Noting the importance of Rs 200 notes, the report said, “Notes of Rs 2,000 denomination in ATMs may find few takers because of missing middle/Rs 200 note,” the report said.
PTI had reported that the RBI was expected to introduce Rs 200 notes soon to ease pressure on lower- denomination currencies that are in short supply. “The new notes of Rs 200 should be out before the end of 2017 and will greatly help in narrowing the demand and supply gap in smaller-denomination currency bills,” it said.
The news of RBI stopping printing of Rs 2000 notes surprised many on Wednesday. Congress and Samajwadi Party MPs raised questions in Rajya Sabha on whether RBI has stopped the printing of Rs 2,000 notes. “Rs 2000 note to now be replaced by Rs 200. This govt takes decisions not easily justifiable on logic, convenience, or citizen welfare,” Congress leader Abhishek Singhvi tweeted.