It has been observed that there is a gradual increase in the supply and circulation of new Rs. 500 and Rs. 2000 notes. The Reserve Bank of India (RBI) said that it has planned ahead for payday rush and banks have made arrangements accordingly. As of now, the RBI is now focusing more on the circulation of Rs. 500 notes and making them available in surplus than just printing them. Also of all the Rs. 100 currency notes in circulation, Reserve Bank of India, as a foresight has kept 50% of them so as to release them ahead for the payday demand.
The Finance Ministry yesterday declared that they are considering the withdrawal of all exempted places where old demonetised Rs. 500 and Rs. 1000 were allowed. This decision has been taken so that new notes can be pushed into circulation. The UPA government is facing a problem is providing cash of circulation. Now with payday here, the demand has only increased, but the problem is people have already begun hoarding new currency too.
The entire process of printing the high denominations of Rs. 500 and Rs. 2000, with all the security features, will take a minimum of 21 days to go into circulation after leaving the mint. Also, RBI officials have also stated that circulating ample money till December 7, would not be a problem. They assured that they have planned ahead in this regard and would fulfill the needs of citizens on payday and for the nest week too, that is December 1 through the 7.
The biggest challenge now the RBI faces is, people hoarding the new currency notes. To try and solve this, the government made and exemption to petrol stations, to pay civic taxes and utility bills in using the old denominations– but are thinking to put a stop to this exemption from now on. The proposal is under consideration so as people start using the new currency of Rs. 500 and Rs. 2000 and bring it into circulation.
