New Delhi: The government has speeded up currency note printing and is running all its four presses round-the-clock, an officer said today amid ATMs running dry in many parts of the country. This week, the note printing presses have been minting out Rs 500 and Rs 200 notes without a break to meet an estimated Rs 70,000 crore of currency shortfall, he said.
The four presses of the Security Printing and Minting Corporation of India Limited or SPMCIL have been running for 18-19 hours daily, with a three-four hour break, on normal operation days.
But since the time ATMs ran dry due to "unusual spurt in demand" for cash, the presses have been operating non-stop, the officer told news agency Press Trust of India.
A currency printing cycle involves 15 days. The increased number of currencies being printed beginning this week would be available only toward the end of this month.
The last time currency notes were printed round-the-clock was just after demonetisation in November 2016, when the presses worked to churn out the new Rs 2,000 notes in order to meet liquidity shortage in the market, said the officer who asked not to be named.
The Reserve Bank of India or RBI on Tuesday said there was sufficient cash in its vaults and currency chests. "Nevertheless, printing of the notes has been ramped up in all the four note presses."
Cash crunch may be felt in some areas largely due to logistical issues of replenishing ATMs frequently. ATMs are also being recalibration to dispense smaller sized Rs 200 notes, the RBI has said.
There has been unusual spurt in currency note demand in some states like Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh and Bihar, the finance ministry has said. In the first 13 days of April, currency demand went up by Rs 45,000 crore.
Economic affairs secretary Subhash Chandra Garg said the government suspects that Rs 2,000 notes are being hoarded as they are not returning into circulation fast enough. To deal with currency shortage, printing of Rs 500 notes have been increased fivefold.
"The currency printing (will increase) from Rs 500 crore to Rs 2,500 crore per day of Rs 500 notes... So in a month, we will be printing about Rs 70,000-Rs 75,000 crore. This should give you assurance that we are geared up to meet the rising demand," he had said.
The Rs 2,000 rupee notes account for 35 per cent of the Rs 18.43 trillion currency in circulation in the country. The printing of this high-denomination note has stopped as it had reached its threshold of Rs 6.70 trillion in the system.
The Rs 18.43 trillion currency notes in circulation compares to nearly Rs 17.97 trillion currency in circulation before demonetisation of the old Rs 500 and Rs 1,000 notes on November 8, 2016.
With inputs from PTI
The four presses of the Security Printing and Minting Corporation of India Limited or SPMCIL have been running for 18-19 hours daily, with a three-four hour break, on normal operation days.
A currency printing cycle involves 15 days. The increased number of currencies being printed beginning this week would be available only toward the end of this month.
Advertisement
The government suspects that Rs 2,000 notes are being hoarded as they are not returning into circulation fast enough
Cash crunch may be felt in some areas largely due to logistical issues of replenishing ATMs frequently. ATMs are also being recalibration to dispense smaller sized Rs 200 notes, the RBI has said.
Advertisement
Economic affairs secretary Subhash Chandra Garg said the government suspects that Rs 2,000 notes are being hoarded as they are not returning into circulation fast enough. To deal with currency shortage, printing of Rs 500 notes have been increased fivefold.
ATMs are also being recalibration to dispense smaller sized Rs 200 notes, the RBI has said.
Advertisement
The Rs 18.43 trillion currency notes in circulation compares to nearly Rs 17.97 trillion currency in circulation before demonetisation of the old Rs 500 and Rs 1,000 notes on November 8, 2016.
Advertisement
COMMENTS
Advertisement
RBI Fines Visa Rs 2.41 Crore Over Usage Of Unauthorised Payment Method RBI Recruitment 2024: Registration Begins For 94 Posts, Check Eligibility, Exam Structure Banking Sector Witnessing A Decade-High Performance: RBI Nurse Raped, Killed On Way Home, Body Found 9 Days Later In UP "Don't Expect Anything From Me": Kolkata Hospital's New Principal Loses Cool This US City Has Been Declared America's Least Desirable, Survey Finds Trump To Hold Press Conference, His Campaign Adds Senior Advisers Left, BJP, Creating Unrest: Mamata Banerjee On Midnight Attack At Hospital 'Don't Club Us With Others,' Says Manipur's Thadou Tribe, Waits For Peace Plan Track Latest News Live on NDTV.com and get news updates from India and around the world.