May need more currency as GDP size increasing, says RBI official - Hindustan Times
close_game
close_game

May need more currency as GDP size increasing, says RBI official

Kolkata | ByPress Trust of India
Jan 17, 2019 04:41 PM IST

The RBI official said there has been a decline in counterfeit notes post-demonetisation and whatever is in circulation at present is “very crude counterfeiting”.

With the country’s GDP size increasing in quantitative terms, there could be need for more currency in the economy, a Reserve Bank of India official said Thursday.

With the country’s GDP size increasing in quantitative terms, there could be need for more currency in the economy, a Reserve Bank of India official said Thursday.(Reuters Photo)
With the country’s GDP size increasing in quantitative terms, there could be need for more currency in the economy, a Reserve Bank of India official said Thursday.(Reuters Photo)

Following demonetisation in November 2016, when the government junked high value currency notes of denominations 500 and 1,000, there was a shrinkage in currency in the system. Now, with the growth in Gross Domestic Product (GDP), “there may be a need for more currency in the system,” the RBI official said during an interactive session in Kolkata.

Hindustan Times - your fastest source for breaking news! Read now.

Post-demonetisation, the government re-introduced Rs 500 banknote but the Rs 1,000 currency note was discontinued.

However, the RBI introduced banknotes of denomination 2,000 during the period.

The central bank official said there has been a decline in counterfeit notes and whatever is in circulation at present is “very crude counterfeiting”.

Also read: RBI loosens curbs on companies’ offshore borrowing, move likely to support rupee

“The bank will also be issuing more security features in the currency for which pre-qualification bid notice has been floated,” he said.

Regarding Non Banking Finance Companies (NBFC), another official said that the RBI would appoint an ombudsman for deposit-taking NBFCs, with the addition of a digital ombudsman.

The apex bank has been pursuing a national strategy on financial inclusion, he said.

The RBI has also formed an expert committee for the micro, small and medium enterprises (MSMEs) so that they were able to avail bank credit without too may hassles.

The RBI had also started co-origination of loans with banks and NBFCs which would help the customers in getting a better rate as the cost of funds of banks were low, he said.

Also read: RBI to inject Rs 10,000 crore through open market operations this week

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On