The State Bank of India (SBI) has said that 70 per cent of the currency notes will be remonetised by February end as the Reserve Bank is printing notes of varied smaller denominations as well as printing Rs 2000 notes so as to optimise the printing capacity.
According to a report in The Indian Express, in its latest research report, the SBI has pointed out that the future belongs to money as a medium of exchange and not as a store of value.
“Printing of new notes is going on at a pace keeping in mind the less cash future and not the past and we welcome this new normal. The future belongs to money as a medium of exchange and not as a store of value,” the SBI report said.
“Also, with petrol pump transactions amounting to Rs 4.5 lakh crore on an annualised basis, even a 20 per cent shift to digital would mean a saving of Rs 1 lakh crore. Hence normalcy will return most likely by February end,” it added.
The report further said that newly supplied currency till January 13 was around Rs 7 lakh crore, according to the latest RBI data on currency in circulation.
“This means that roughly 70 million pieces of notes of different denominations are being printed per day at the printing press. This translates into around 1.8 billion pieces per month by the printing press,” it said.
