RBI gets nod from Finance Ministry to print new Rs 200 notes
The Dollar Business Bureau The Government on Wednesday gave its approval to the Reserve Bank of India (RBI) for issuing Rs.200 banknotes that will improve the currency situation and ease the pressure on lower value notes. “On the recommendations of the Central Board of Directors of the RBI, the Central Government hereby specifies the denomination of banknotes of the value of Rs.200,” the Ministry of Finance said in a notification. The new notes of Rs.200 denomination are expected to be in circulation soon. However, it had been reported that the RBI would bring in these new notes in the month of March, after having consultation with the Ministry of Finance. The step for printing Rs.200 notes is being taken in order to further improve ...
Cash crunch to normalise by February-end: SBI Report
The Dollar Business Bureau Complete normalcy, after demonetisation, is expected in the next two months and about 75% of the overall value of scrapped bank notes is likely to be back in the system by end of January, according to a report. Given the present phase of 'frantic printing' of bank notes, 50% and 75% of the overall value of scrapped notes can be put into supply by December-end and January next year, respectively, said the SBI's research report Ecowrap. “By the end of February, 78-88% of the currency could be back in the system under the best case scenario in terms of an optimal currency distribution (more small denomination notes)," the report said, “It looks that within the next two months things would ...
Exchange of old notes ends, Rs.500 note still in use
The Dollar Business Bureau Over-the-counter exchange of old Rs.500 and Rs.1000 banknotes has been stopped from today. However, the use of Rs.500 note has been extended for some specific purposes till December 15. After reviewing the situation post-demonetisation, the government said on Thursday that over-the-counter exchange of old Rs.500 and Rs.1,000 banknotes have shown a decreasing trend. “It has further been felt that people may be encouraged and facilitated to deposit their old notes in their bank accounts. This will encourage people who are still unbanked to open bank accounts,” it said. Earlier, the government had allowed exemptions for certain transactions and activities, such as buying railway tickets and cooking gas cylinders, payments at petrol pumps, government hospitals, pharmacies, and toll plazas, where payment could be ...
RBI clarifies rationale behind the currency notes withdrawal
The Dollar Business Bureau After the surprise announcement by the government of making Rs.500 and Rs.1,000 currency notes illegal from midnight, the Reserve Bank of India (RBI) announced a 25-point detailed FAQs (frequently asked questions) clarifying the rationale behind the decision. The RBI said the most vital reason for making the banknotes illegal was the abnormal increase in fake currency notes of higher denomination, as well as more incidence of black money in the system. The bank assured the people that their higher value money will get exactly the same amount in lower denominations. “You will get value for the entire volume of notes tendered at the bank branches/RBI offices,” the RBI assured the public, however, adding that there will be ceiling on ...
Indigenous currency papers, use of plastic cards to reduce imports, says Finance Minister
The Dollar Business Bureau Use of credit and debit cards instead of cash and manufacturing currency papers within the country, can help India reduce its imports of high-security papers, Finance Minister Arun Jaitley said on Tuesday. Speaking at a conference on “Indigenisation of Currency” held in New Delhi, the minister also advocated for the use of internet transactions through various payment gateways. Jaitley said that developed countries have already shifted towards using plastic cards and online payments and now it is time for India to follow suit. “The developed world has moved substantially to plastic currency and payment gateways. I think there is need for India and our determination is there to gradually take steps to move in that direction,” the minister ...
