Reserve Bank of India (RBI) has stopped printing of Rs 2,000 notes and are working to increase the production of smaller bills, which also includes new notes of Rs 200. The new currency notes are expected to hit the market by August this year. Also, the central bank will not be printing the new notes of Rs 2,000 in the current financial year.
As per a report in the Livemint, an official of the RBI on the condition of anonymity said, about 3.7 billion Rs 2000 notes amounting to Rs 7.4 trillion have been printed. This compensate for the 6.3 billion 1,000-rupee notes which were withdrawn after the Prime Minister Narendra Modi announced demonetisation on November 8, last year.
Reportedly, the RBI started printing the new notes of Rs 200 in the month of June to ensure easy availability of the currency. The new notes are currently going through multiple checks for the quality at government printing presses. It is expected that the circulation of Rs 2,000 will fall after Rs 200 currency notes hit the market.
He added, “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”. However, not all the new notes that are printed have been circulated.
Also, the new batch of Rs 500 are being brought for the same reason: to ease the shortage of Rs 2000 currency notes. Neeraj Vyas, deputy managing director, State Bank of India (SBI) said, “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”.