During this peak time of demonetization, we have the trending stories on new Rs. 500 and Rs. 2000 notes. But, the bigger question is, why we are seeing so more of pink soaked Rs. 2000 notes and less dollar resembling Rs. 500 notes?
And the only legal answer is that, the Reserve Bank of India prints Rs. 2000 notes and not Rs. 500 notes. Rs. 500 notes flow out of the presses in Nashik, Maharashtra and Devas, Madhya Pradesh, which are owned by the government.
RBI officials have clarified the fact that, they have zero control over the supply and flow of Rs. 500 notes.
Justifying their intact management, an RBI official said that, “Why should we be blamed? The government is taking all the decisions. We are simply coming out with notifications after statements by finance ministry officials.
Indeed, the poor supply is an result of miscalculations over the actual needs of cash and over emphasising on just exchange factors.
Further elaborating they said, that the printing process of Rs. 2000 notes was initiated quite before the new Rs. 500 notes flowed out of the government presses.
As per the RBI’s data, we have 9026.6 crore bits of currency in the flow, and Rs. 500 and Rs. 1000 notes holds the 24% of it.
Hence, as a result of whole scenario, the small vendors including traders, shop-keepers and other individuals are holding the most loose money and they are not ready to accept the Rs. 2000 notes because of less liquidation.
A senior official of RBI also mentioned that, “there is a logistic issue that needs to be addressed. Although there may be inventory of currency. Moving currency from one place to another – be it from RBI printing press to currency chest or from currency chest to bank branches and ATMs – it needs high level of security and at times quality of road and manpower is an issue”.
