RBI stops printing Rs 2000 notes, focus turns to Rs 200 notes

The Reserve Bank of India (RBI) stopped printing 2,000-rupee notes about five months ago, stepping up instead the production of smaller bills, including a new Rs 200, people familiar with the matter said on Tuesday.

The central bank is also unlikely to print more 2000-rupee notes in the current financial year, they said on condition of anonymity.

The government brought in the 2000-rupee note to quickly tide over a cash crunch from demonetisation, but fewer lower-value currency in circulation meant people struggled to change the big denomination bill.

The RBI’s focus now on printing small bills is aimed at bridging that gap.RBI data shows that currency in circulation stood at Rs 15.22 trillion as on 14 July, eight months after demonetisation. This is about 86% of the Rs 17.7 trillion that was in circulation on November 4.

“Although we haven’t seen any drop in supply of 2,000-rupee notes, we expect it to be moved out of ATMs once 200-rupee notes hit the market,” said Radha Rama Dorai, country head, ATM and allied services, at ATM service provider FIS.