As the nation continue to adjust with demonetisation since November 8, after Prime Minister Narendra Modi announced the move to curb the black money menace in the country, only new notes worth only Rs 1.5 lakh crore have out in circulation, a report by Credit Suisse has said. As per the report, A large share of this amount has been in the form of Rs 2,000 notes, which are not ideal for transacting, the report further said.
It added that Rs 1.5 lakh crore worth of new notes supplement the Rs 2.2 lakh crore of residual currency, which are already in circulation. But it could be few months before the Reserve Bank of India is able to plug the Rs 14.18 lakh crore hole left behind by the withdrawal of the 2,203 crore pieces of Rs 500 and Rs 1,000 currency notes, as per the estimates.
“To meet the new currency demand, industry estimates indicate that the RBI has already been able to print 150 crore (Rs 3 lakh crore worth of currency). However, these notes being high value and with remaining currency <15 per cent of the total currency, they are unable to provide enough liquidity to transact,” the report said.
Official information of about the central bank’s print order are incomplete. Earlier this mont, the central bank had informed Madras High Court that it could not reveal details of the release of new Rs 500 notes to banks due security concerns.
On November 22, the RBI said that banks had disbursed Rs 1.03 lakh crore to customers through branches and ATMs between November 10 and November 18. Banks had collected Rs 5.44 lakh crore, the RBI has said in statement.
Of the Rs 14.18 lakh crore worth of high-valued currency that were banned, cash deposited in banks is around Rs 6 lakh crore, as per Attorney General Mukul Rohatgi’s presentation to the Supreme Court last Wednesday.
According to the Credit Suisse report, considering trends last week, “it appears RBI has been able to print only 4-5 crore pieces/day of the new Rs 500”. Until last weekend about 40 crore of these were issued to the banks, which translated to only Rs 20,000 crore in value, it added.