With people had to wait for hours in long queues outside banks and not many ATMs functional on Friday, just days after the government’s announcement of demonetisation of Rs 500 and Rs 1,000 notes in order to curb flow of black money in the country, officials of the Union Finance Ministry and Reserve Bank of India are scheduled to meet on Saturday to resolve the immediate shortage of cash.
Speaking to ‘The Indian Express’ an official said that even while there is sufficient availability of new currency, the problem currently is the logistics of its movement and timely stocking. The meeting with the RBI team will be held to understand their difficulty and come out with a solution.
He further added that “1.5 billion pieces” of Rs 2,000 notes, which is Rs 3 lakh crore had been circulated and further 1.5 billion would be infused at the earliest take the month-end stock to 3 billion pieces, or Rs 6 lakh crore.
As per the central bank, the new Rs 500 have been introduced in Delhi and Mumbai only as of now. The plan is to distribute them across the country over the next fortnight gradually. The aim is to flood the market with higher value Rs 2,000 notes to make up for the decrease in money supply due to banning of old s 500 and Rs 1,000 notes, he said.
Since Tuesday night, when Prime Minister Narendra Modi announced demonetisation move, more than Rs 14 lakh crore worth of Rs 500 and Rs 1,000 notes have been pulled out of circulation. The RBI has also started printing new Rs 1,000 notes and is likely to circulate from december. The report also quoted a source as saying that after volumes rise, the ongoing supply of Rs 2,000 would be “controlled” to reduce inflationary pressure.