Economic Affairs Secretary Subhash Chandra Garg today announced that the central government has decided to increase the printing of Rs 500 notes in order to meet the unusual currency demand in the country.
“To give you an example, Rs 500 notes — we print about 500 crores of these notes per day. We have taken steps to raise this production five times,” Garg said at a press meet in Delhi.
He tried to calm fears after reports of currency shortages emerged from several parts of the country.
“In the next couple of days, we will have a supply of about Rs 2,500 crore worth of Rs 500 notes per day. In a month, supply would be about Rs 70,000-75,000 crore. These notes alone can more than meet the demand of any month,” he said.
Asserting that there was no cash crunch in the country, Garg said currently Rs 18 lakh crore worth of currency is in circulation. “We keep Rs 2.5-3 lakh crore more currency in stock for excess demand. In the last few days, we have pumped cash into the system to meet the demand. We still have a reserve of Rs 1.75 lakh crore,” he added.
Attributing the sudden cash demand to the localized phenomenon, Garg said this unusual spurt in demand is seen in states like Telangana, Andhra Pradesh, Karnataka, Bihar and Madhya Pradesh. He then termed this phenomenon as ‘shortage mentality’.