Best of wishes xxx <| sep |># Here ' s the real reason why your ATM has more Rs 2 , 000 less of the new Rs 500 notesIMAGE 155617841 , width 310 , resizemode 4 . jpg MUMBAI At the heart of the cash crunch imposed by demonetisation is the tale of two notes Rs 500 and Rs 2 , 000 . Why is there a deluge of the pink Rs 2 , 000 bills and a scarcity of the dollar lookalike , Rs 500 notes ? The answer is simple 2000 notes are printed in the press run by the Reserve Bank of India , while the Rs 500 notes are flowing out of the governmentowned presses in Nashik , Maharashtra and Devas in Madhya Pradesh . RBI officials , upset about a widely shared perception that the central bank has been belittled by the government ' s handling of the demonetisation , told ET that they have no control over the supply of 500 notes . Why should we be blamed ? The government is taking all the decisions . We are simply coming out with notifications after statements by finance ministry officials , said an RBI oldtimer . The poor supply is an outcome of the government ' s grossly misjudging the transactional importance of cash and overemphasising on the exchange needs . Moreover , the printing of Rs 2 , 000 notes started well before the new Rs 500 notes came out of the government press . As per the RBI data , there are around 9026 . 6 crore pieces of currency in circulation and of this roughly 24 % comprises Rs 500 and Rs 1000 denomination notes . According to a calculation done by former finance minister P Chidambaram , it would take about seven months to replace the notes . They are trying to race against time . There were 1570 crore notes of one denomination and 530 crore notes of another denomination a total of 2100 crore notes . The capacity of printing presses is 300 crore notes per month . If they wanted to replace 2100 crore notes with the equivalent denomination notes , it would take them seven months to print them . That is why they introduced Rs 2 , 000 notes , Chidambaram said in a TV interview . Senior RBI officials said the RBI printed Rs 2 , 000 notes hoping that the process of replacing invalid notes would be faster . However , what they failed to realise that in the absence of availability of Rs 500 notes a number of individuals , traders and shopkeepers are now hoarding the small denomination notes . Therefore even as Rs 2 , 000 note is widely at bank counters , it is not accepted by the small kirana shops and hired taxis . Secondly , there is a logistic issue that needs to be addressed . Although there may be inventory of currency . Moving currency from one place to another be it from RBI printing press to currency chest or from currency chest to bank branches and ATMs it needs high level of security and at times quality of road and manpower is an issue , said a senior official from RBI . Version 0 . 5 b Function I post the article ' s text as a comment if the website is adblocker unfriendly . I accept commands ! Rendered by PROMETHEUS