New Delhi, Dec 1, 2016: In the wake to meet the demand of payday during December 1-7, Finance Ministry sources said the government is considering withdrawal of all exemptions on the use of demonetised Rs 500 and Rs 1,000 notes so that new notes are pushed into circulation.
The Narendra Modi government is struggling not only with the challenge of putting sufficient currency notes into circulation but also of people hoarding the new notes.
“There has been a steady improvement in the supply of currency notes and that the Reserve Bank of India (RBI) has planned for the payday rush and banks have made arrangements,” says sources.
According to sources, RBI’s focus has now shifted to printing the new Rs 500 notes to make them available in large numbers. Sources add that of the total Rs 100 currency notes in circulation, RBI had kept 50% of these in reserves to tide over the payday demand. The entire process of printing a high-value currency note, including its security features, takes 21 days before it leaves the mints for circulation.
Senior officials affirmed putting money in abundant quantities to meet the demand till December 7 would not be a problem.