Here’s how much it cost the government to make Rs 2000 notes
It took the RBI eight months to restore currency circulation to pre-demonetisation era. Zeebiz analyses cost to print old Rs 1000 and Rs 500 notes and new notes by the government.
- Eight months after demonetisation currency in circulation reached Rs 15.22 lakh crore as on July 14.
- Nearly 3.2 lakh crore Rs 2000 notes have been printed by RBI so far.
- Demonetisation scrapped old currency worth Rs 20.52 lakh crore.
Reserve Bank of India (RBI) has reportedly stopped the printing of Rs 2000 notes five months ago.
Until further communicated by the government, Rs 2000 note is still legal tender and can be used for daily transactions.
RBI may not be printing any more Rs 2000 notes this year and has begun printing of Rs 200 notes, a report by Live Mint said.
Bankers have said that fresh supply of Rs 2000 notes were gradually declining, as a DNA report said adding that 3.2 lakh crore Rs 2000 notes were printed by the RBI so far.
The old Rs 500 and Rs 1000 notes became illegal tender on the night of November 8, 2016, with PM Narendra Modi’s announcement. The government's decision to demonetise higher denomination notes removed 85.6% of the currency in circulation which amounted to Rs 20.52 lakh crore in old currency notes, a report by Economic Times said in December 2016.
Media reports said that the Rs 2000 notes hit the mint in the August-September period and by November 8 an RTI query revealed that the RBI had a stock of Rs 4.95 lakh crore in the new Rs 2000 denomination notes.
However, the currency in circulation increased since then with a purpose to ‘remonetise India.’
Currently the currency in circulation by RBI estimates is Rs 15.22 lakh crore as on July 14.
Replying to an older RTI query from 2012, the RBI had said it cost Rs 2.50 to print each Rs 500 denomination note and Rs 3.17 to print a Rs 1,000 note. It is unclear how long before demonetisation the government stopped printing old Rs 1000 and Rs 500 notes.
Cost to the central bank was estimated to be Rs 3,917 crore to print 1,567 crore Rs 500 notes and Rs 2,000 crore to print 632 crore Rs 1,000 notes up until demonetisation, a report by The Hindu said on 9 November 2016.
Similar amounts were assumed for the printing of new Rs 2000 notes and Rs 500 notes post demonetisation.
Then the cost for replacing the old currency was at least Rs 12,000 crore, the report added.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.