Mumbai: The Reserve Bank of India (RBI) has stopped printing the Rs 2,000 notes and will not be bringing new notes of that denomination in the current financial year, according to media reports on Tuesday.
Officials of the central bank reportedly told the newspaper that the RBI had also accelerated the process of printing the Rs 200 currency notes. The new notes are expected to start circulating by next month.
“About 3.7 billion Rs 2,000 notes, amounting to Rs 7.4 lakh crore, have been printed; that more than compensates for the 6.3 billion Rs 1,000 notes that were withdrawn after demonetization on 8 November 2016,” citing an RBI source, media reports.
The RBI has reportedly already started printing the first batch of Rs 200 note in June to ensure easy currency availability in the country.
In fact a report by SBI even says that the introduction of Rs 200 note will fill in the “missing middle” even as the new currency in circulation (CIC) has already reached 84 per cent of the pre-demonetisation level.
The 19 July report from SBI’s economic research wing showed that cash on hand with banks was high at 5.4 per cent of currency in circulation, compared with 3.8 per cent before demonetisation. This shows that there is excess cash lying in ATMs or bank branches, most of which could mostly be Rs 2,000 notes, according to the report.
The SBI report noted that though there had been a significant move towards reallocating the distribution of currency towards smaller denominations after demonetisation, there was a mismatch caused by the presence of Rs 2,000 denomination straight after Rs 500.
The new notes of Rs 200 should be out before the end of 2017 and would greatly help narrow the demand-supply gap in smaller-denomination currency bills, it said.
Besides, an ATM machine typically holds 10,000 bills and if these were to comprise, say, only Rs 100 notes, the number and cost of replenishment would go up significantly.
“Herein lies the paradox. Notes of Rs 2,000 denomination in ATMs may find few takers because of the missing middle/Rs 200 note,” the report said.
The Economic Times, last week reported that eight months after demonetisation and the introduction of new currency notes, bankers felt there was now a drop in the circulation of Rs 2,000 notes. The report had added that the supply of Rs 2,000 notes from the RBI had declined recently, leading to the speculation that there might be a deliberate plan to limit the supply of these notes.
State Bank of India Chief Operating Officer Neeraj Vyas had told English news channel, “We are receiving currency notes from the Reserve Bank in the denomination of Rs 500 in high-value currency”, and that the Rs 2,000 notes were only coming in as a result of recirculation.
Online business news web portal had earlier reported this month that RBI would issue the new Rs 200 notes to tide over the shortage of low-denomeination notes, in some parts of the country.
An official said, “It will also help in bigger transactions. You can give change for Rs 2,000 in ten Rs 200 notes rather than twenty Rs 100 notes,” adding that the notes should be in circulation by the end of 2017.
Zomato acquires UberEats India for nearly Rs 2,500 crore
New Delhi: Zomato on Tuesday announced that it has acquired Uber’s Food Delivery Business in India in an all-stock deal and Uber will have 9.99 per cent stake in the Deepinder Goyal-led food delivery platform.
According to sources close to the deal, it is in the range of over $350 million or nearly Rs 2,500 crore.
Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective from Tuesday.
“We are proud to have pioneered restaurant discovery and to have created a leading food delivery business across more than 500 cities in India. This acquisition significantly strengthens our position in the category,” said Goyal, Founder and CEO, Zomato.
According to company sources, for the first three quarters of 2019, “our Uber Eats business comprised 3 per cent of our global Eats gross bookings, but was more than 25 per cent of our global Eats Segment Adjusted EBITDA losses”.
Uber started its food delivery service in India around mid-2017, but has not been able to scale up in the face of big players like Zomato and Swiggy.
It currently has nearly 26,000 restuarants listed on its platform from over 40 cities.
The market is piping hot as according to a recent study by business consultancy firm Market Research Future, the online food ordering market in India is likely to grow at over 16 per cent annually to touch $17.02 billion by 2023.
Uber CEO Dara Khosrowshahi said that the Uber Eats team in India has achieved an incredible amount over the last two years.
“India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” said Khosrowshahi.
“We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” he added.
On January 10, Zomato had announced that it has secured $150 million in fresh funding from Ant Financial, a subsidiary of China-based giant Alibaba.
The latest round of funding in Zomato, which currently value the company at $3 billion, is part of $600 million funding round announced by Zomato CEO Goyal at a Delhi event last December.
The deal comes in the wake of merger talks between Zomato and Swiggy, whoch both the companies have denied to date.