Business News

Rs 500 notes worth Rs 3,000 crore printed every day: Economic affairs secretary

The Reserve Bank has increased the printing of notes of rupees 500. At the same time, new notes of Rs 2,000 are not being issued anymore. Currencies in 500, 200 and 100 denominations are comfortable mode for transactions and the printing of Rs 500 notes have been ramped-up to about Rs 3,000 crore everyday to take care of extra demand, economic affairs secretary Subhash Chandra Garg said.

Speaking to PTI, Garg also said the fundamentals of economy does not call for an interest rate hike at the moment as there has not been any “disproportionate rise in inflation” or “extra ordinary growth in output”.

“Overall in the country, I think its (cash situation) quite comfortable. There is enough cash which is being supplied and there is extra demand which is being fully met. I don’t think there is any cash related crisis or problem at this point of time,” Garg said.

There are about Rs 7 lakh crore of Rs 2,000 notes in circulation, which is more than adequate and and so no new Rs 2,000 notes are being issued.

“500 and 200 and 100 rupee note is people’s medium of transaction. That’s what people use, people don’t find Rs 2,000 rupee note as a very comfortable medium for making transaction. 500 rupee notes is very adequately supplied. We have ramped up production to the level that it is about Rs 2,500-3000 crore a day. So, that is much more than any demand. People’s need for transaction is being taken care of by these,” he said.

Share

Leave a Reply

Your email address will not be published. Required fields are marked *

Our YouTube ChannelOur Facebook PageOur Twitter PageOur LinkedIn PageOur Instagram PageOur Whatsapp NumberYour Idea