RBI to issue new Rs 200 notes next month, stops printing Rs 2000 notes; more focus on Rs 500 notes

The Reserve Bank of India has stopped printing Rs 2000 notes and instead ramped up the printing of new batches of Rs 500 notes, according to Livemint. The central bank is also set to introduce new note of denomination Rs 200 next month. The Reserve Bank of India has not yet officially confirmed if it has stopped printing the Rs 2000 notes. Livemint cited people familiar with the matter as saying that the RBI would not print any more Rs 2000 notes in this financial year.  The source said the RBI had so far printed 3.7 billion Rs 2000 notes the total value of which amounted to Rs 7.4 trillion. But, now all the focus is on Rs 500 and Rs 200 notes.

"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," Livemint quoted the source as saying. The new Rs 500 notes amount close to Rs 7.85 trillion which was the value of 15.7 billion old demonetized Rs 500 notes. According to RBI data, the currency in circulation stood at Rs 15.22 trillion as on 14 July, which is near 86% of the Rs 17.7 trillion that was in circulation on 4 November.

The Reserve Bank of India could be issuing the new Rs 200 notes as early as next month. "We have already started printing the first batch of 200-rupee notes 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 notes by next month," a source, who is part of the government's investment and currency department, told India Today.

Two Reserve Bank of India printing presses under Bharatiya Reserve Bank Note Mudran Private Limited - an RBI subsidiary that prints banknotes - from Mysore and Salboni are producing the Rs 200 notes.

According to an SBI report, cash with banks has declined to 5.4% of the currency in circulation from 23.19% pre-demonetisation. With Rs 200 notes pumped into the system, the cash reservoir will be boosted.

"We are operating at full capacity for 500-rupee note production. When the 200-rupee note will be introduced, it will ease currency availability," said a top official from the finance ministry told India Today. Prime Minister Narendra Modi's decision last November to scrap Rs 500 and Rs 1,000 notes had disrupted the lives of people across the country as the RBI struggled to make new notes easily available.