Rs. 200 notes might be available as early as August
If reports are to be believed, the RBI has already started printing of new Rs. 200 notes that are expected to hit the market by August. Complementing the push to circulation of low-value currency, the bank has also stopped printing Rs. 2,000 notes for the current financial year. According to SBI, the currency in circulation in the economy has reached 84% of pre-demonetization levels.
The beginning of the end of the Rs. 2,000 note?
There had been disequilibrium in the market after the introduction of Rs. 2,000 notes straight after Rs. 500. Recently, SBI was only receiving Rs. 500 from RBI in high-value currency, said COO Neeraj Vyas, and the Rs. 2,000 notes coming in were only due to recirculation. Rs. 200 notes are an attempt to make up for the lack of low-value notes in the economy.
Drastic changes expected with the new Rs. 200 notes
After new Rs. 200 notes come in, Rs. 2,000 notes in ATMs are expected to find fewer takers. Number and cost of replenishment in ATMs, which generally hold 10,000 notes, will also decrease compared to Rs. 100 notes. "It will also help in bigger transactions. You can (pay) Rs 2,000 in ten Rs 200 notes rather than twenty Rs 100 notes," an official said.
What's the status of cash availability after demonetization anyway?
According to an SBI report, cash on hand with banks has increased after demonetization, with 5.4% of the currency in circulation available now as compared to 3.8% earlier. "About 3.7bn Rs 2,000 notes, amounting to Rs 7.4L crore, have been printed," an RBI source said. This is more than the 6.3bn Rs. 1,000 notes withdrawn after demonetization.
