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Government To Up Printing Of Rs 500 Notes To Tackle Cash Crunch

the government has decided to increase printing of Rs 500 notes by five times We have taken steps to increase the supply of currency in case the demand were to go up further. To give you an example, Rs 500 notes — we print about 500 crore of notes per day. We have taken steps to raise this production five times,” Garg said at a press meet called to calm fears after reports of currency shortages emerged from several parts of the country.

“Very soon, in the next couple of days, we will have a supply of about Rs 2,500 crore worth of Rs 500 notes per day. In a month .. Garg asserted that there was no cash crunch in the country, pointing out that currently around Rs 18 lakh crore worth of currency was in circulation

unusually high demand” for currency in the last couple of months. As opposed to an average demand of about Rs 20,000 crore a month, “in the first 13 days of April itself there was a demand of Rs 45,000 crore

whether there was any hoarding of the Rs 2,000 notes, he said: “In this system, there are about 6.70 lakh crore worth of Rs 2,000 notes. They are more than adequate to meet the transaction demand of customers… But, off late, we have noted somewhat lesser inflow coming back from circulation.

“We have not got this investigated, but you can assume that this one note is most suitable for people to keep with themselves. There has been some tendency of some people using Rs 2,000 notes higher currency circulation in the system compared to the pre-demonetisation period, Garg said: “At the time of demonetisation, the currency in circulation Rs 17.5 lakh crore. Currency in circulation now is about Rs 18 lakh crore. So it is in absolute numbers higher than at the time of demonetisation.”

“But demonetisation is one-and-a-half years earlier… if we had taken that growth path, we would had still been much higher. If the currency had grown as it was growing before demonetization.

 

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