‘Rs 200 notes won’t ease cash crunch much’

Sakal Times
Wednesday, 5 July 2017

Following demonetisation, new notes of Rs 500 and Rs 2,000 were launched in the market. In the absence of Rs 1,000 currency, there was a necessity for an intermediate currency note to ease out payments

Pune: While news is afloat about the introduction of Rs 200 denomination currency notes, certain economists believe that the introduction of the new denomination will go only some way into easing the cash crunch being faced in the market. The market has been witnessing an enormous cash crunch following demonetisation, with ATMs continuing to run dry regularly.

Sources have confirmed that Rs 200 currency notes are going to be introduced and that a printing order has already been placed. Speculations are also underway that the new notes will not be available in ATMs.

The government, on November 8 last year, had demonetised

Rs 500 and Rs 1,000 currency notes, leaving a huge cash crunch in the market.

Speaking on the move, an economist, on the condition of anonymity, said, “Following demonetisation, new notes of Rs 500 and Rs 2,000 were launched in the market. In the absence of Rs 1,000 currency, there was a necessity for an intermediate currency note to ease out payments,” the economist said.

While it is being stated that the new note will improve the currency situation in the company, the economist further added that the new notes will only ease the cash crunch to a certain extent. “This new currency is only an intermediate currency and won’t do a great job in easing the cash crunch which is being faced in the markets across the country,” the
economist said.

A photograph of the supposed Rs 200 currency note is also widely being shared on the social media in the last few days.

 

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