New Delhi, July 26: The Reserve Bank of India stopped printing of Rs 2,000 notes nearly five months ago and it is unlikely to print the note of higher denomination in the current financial year, sources said. On the other hand, the central bank has stepped up the printing of other denominations, including new Rs 200 notes, the sources said.
“Most of the printing that’s being done, about 90 per cent is only Rs 500 notes. Nearly 14 billion pieces of new Rs 500 notes have been printed so far,” sources told the Mint.
It was earlier reported that the Rs 200 denomination notes are being printed in a government-owned facility and will carry advanced security features. The notes are going through different levels of security and quality checks at the government’s press unit at Hoshangabad (Madhya Pradesh), source said. The printing of notes is being done either in printing units run by the government-run Security Printing and Minting Corporation of India Ltd or at printing presses in Mysore (Karnataka) and Salboni (West Bengal), managed by the RBI-owned Bharatiya Reserve Bank Note Mudran Private Ltd.
According to RBI data, that currency in circulation stood at Rs 15.22 trillion as on July 14, eight months after demonetisation. This is about 86 per cent of the Rs 17.7 trillion that was in circulation on November 4.
The sources said that the new Rs 200 notes are likely to come into circulation next month. “Initially, around a billion Rs 200 notes are expected to hit the market,” the sources added.
In a surprise announcement, Prime Minister Narendra Modi on November 8, 2016 had announced scrapping of old notes of Rs 1,000 and Rs 500 notes, wiping out over 85 per cent of the cash in circulation. The move was aimed at checking black money, counterfeit notes and terror financing.
The RBI board had in March cleared the proposal to issue banknotes of Rs 200 denomination. The government, too, had examined the introduction of the new notes. The Rs 200 currency note would be third in line to be printed following demonetisation. The new Rs 500 replaced the old one and Rs 2,000 note replaced the old Rs 1,000 note.