RBI to issue Rs 100 coin soon, reduces printing currency notes for promoting digital transactions

RBI keeps repo rate, reverse repo rate unchanged at 6 percent and 5.75 percent

New Delhi, September 13: The government is about to print less currency notes in order to promote digital transaction. As per media reports, latest data from Reserve Bank of India reveals the fall of currency in circulation (CIC) by Rs 417 crore to Rs 15.65 lakh crore. RBI soon to issue 100 rupees coin.

Total currency just before the demonetisation in November 2016 was Rs 17.97 lakh crore. Soumya Kanti Ghosh, who heads SBI Economic Research, told that RBI is printing less number of notes as earlier the printing currency were in three shifts and now only in two shifts. She also added that currency in circulation won’t go back to the pre-demonetisation time, and now the government focus on digital payments.

According to media reports, government is to introduce Rs 100 coin for the second time. It will be for commemorative purpose alone.

Government public utilities like buses, railway, water and electricity departments will switch on to digital payment modes like unified payments interface, the Bharat QR Code and the Bharat Interface for Money (BHIM). There are special counters at post offices for digital payment.

Upasana Bhardwaj, economist at Kotak Economic Research, said that CIC might witness some rise in the short term because of the increase in cash demand seen at the beginning of every month.

With the tax outflows and auction-related outflows, liquidity in banking system is also draining out. Upasana asserted, “we expect liquidity surplus to tighten further this week on the back of advance tax outflows, OMO (open market operations) sale and heavy auctions of G-Sec, SDL (state development loans) and T-Bills against limited inflows.”