RBI shifts focus to Rs 200 notes, stops printing of Rs 2000 notes

After the introduction of new Rs 500 and Rs 2000 notes, now the RBI has stopped printing Rs 2000 notes and shifted all its focus on printing Rs 200 notes.

RBI officials told Live Mint that, the central bank has stepped up the printing of Rs 200 notes. “Initially, around a billion Rs 200 notes are expected to hit the market,” an official told Live Mint.

The RBI is also reportedly printing new batches of Rs 500 notes, which are expected to compensate for the Rs 2,000 notes in circulation. “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,” an official told Live Mint.

According to reports, this decision of printing the lower denomination Rs 200 notes was taken in March by the finance ministry. The RBI will also add more security layers to new currency note, to keep a check on counterfeiting. Apparently, two RBI’s printing press under Bharatiya Reserve Bank Note Mudran Private Limited from Mysuru and Salboni are printing the Rs 200 notes.

A top level official told India Today, “We have already started printing of the first batch of 200 rupee note in June. It takes 21 days for the printing process to complete. So we are on track to meet the deadline to introduce 200 rupee note by next month.”

The government planned to print the lower denomination note to ease the transaction, and also the government is preparing to decline Rs 2000 notes, which were introduced last year. Since demonetisation, 3.7 billion currency notes of Rs 2,000 denomination have been printed, amounting to Rs 7.4 trillion in value. According to the RBI sources, adequately compensates for the 6.3 billion Rs 1000 notes that were withdrawn following the announcement of demonetisation by Prime Minister Narendra Modi on 8 November last year.

(To download our E-paper please click here. The publishers permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal