New Delhi: The SBI Research report says that the Reserve Bank of India (RBI) can either hold back a note of Rs 2,000 or stopped printing a high denomination currency.
According to the data provided by RBI in the annual report by the Reserve Bank of India in the annual report, SBI report has said that “we believe” that the value of the small denomination currency running till March 2017 was 3,501 billion on December 8 It was equal to 13,324 billion rupees, the day after the removal of small denomination notes from circulation in the currency, it was said.
It has been further stated in the report that according to the Finance Ministry in the Lok Sabha recently, the RBI has printed 16,957 million pieces of 500 notes and 3,654 pieces of 2,000 notes as on December 8. The total value of such notes is changed to 15,787 billion rupees.
“This means that there can be a residual amount of high currency notes of Rs (15,787 billion rupees – 13,324 billion rupees) of 2,463 billion by the Reserve Bank, but could not be supplied in the market,” said Soumya Kanti Ghosh, the chief financial officer of the group. Said Advisor, SBI
Interestingly, it has been said in the report that “it is safe to believe” that the lower party can have Rs 2,463 billion as the RBI has printed notes of small denominations (50 rupees and 200 rupees) in intervals.
It also means that the share of small currency notes in the total currency in circulation can now reach 35 percent in terms of value.
On November 8, last year, the government had announced demonetization of 500 rupees and 1,000 rupees of high value notes, in 86-87 percent share of currency in circulation.
This move led to the lack of cash and large queues were witnessed at banks for exchange or depositing the scrapped currency. With the new note of Rs 2,000, the RBI started a new version of Rs 500 note. After this, for the first time, the RBI also presented a note of 200 rupees.