BY MARKET WATCHING India’s two new Rs2,000 currency notes are likely to have no immediate impact on the Indian economy, according to the country’s central bank.
A statement issued on Thursday said the RBI’s Monetary Policy Committee (MPC) had no specific reason to worry about the Rs2 notes.
The RBI had not commented on the report.
But in a previous note, it said the central bank’s concerns with the new notes were not unique to India.
“The central bank has raised concerns about the new Rs. 2,100 notes and the Indian currency in general,” the statement said.
“Our assessment is that these new notes are not likely to cause significant inflationary pressures.
The RBI has made it clear that there is no reason to consider the risk of such an inflationary shock.”
While the RBI did not comment on whether it thought the new currency would have any impact on inflation, it did say that it had raised concerns that the notes might pose risks to the economy’s stability.
The central Bank also reiterated its earlier warning to the Reserve Bank of India not to introduce the new banknotes without a full assessment.
“There is a need to take a close look at these notes, including the stability and security implications, before they can be introduced into circulation,” it said.
It was not immediately clear what impact the two new notes would have on the country.
India’s currency reserves were estimated at about $100 billion last year, according the RBI.