No Decision On Printing Rs 2000 Notes, Have Adequate In System
Jan 04 2019
The government on Friday indicated that printing of Rs 2,000 bank notes, introduced post-demonetisation in November 2016, has been stopped for now as there is enough stock in circulation. It has been chose to limit the printing of 2,000 currency notes to a minimum.
Soon after the overnight ban on Rs 500 and 1,000 notes, which wiped out 80 per cent of the currency in circulation, RBI came out with the Rs 2,000 note and a new-look Rs 500 note. The RBI annual report for the year 2017-18 proved to be shot on their arm as it revealed that Rs 15.31 lakh crore worth currency notes were returned, meaning about 99.3 percent of the total currency notes which went out of circulation on a single day. This was immediately followed with the introduction of Rs 2,000 note by RBI the same evening. "The printing of 2,000 rupee notes has been substantially reduced".
The government had to face some flak for introducing a high-denomination Rs 2,000 note right after demonetising the Rs 1,000 note on grounds that it will help hoarding and money laundering, the very practices demonetisation was supposed to end.
The Secretary of the Department of Economic Affairs (DEA), Subhash Chandra Garg, said that no decision has been taken with regards to the production of Rs. 2000 currency notes.
The squeeze in the circulation of the Rs 2,000 notes started some time back.
The share of the Rs 500 notes in the total currency in circulation has increased too, from 22.5 per cent in March 2017 to 42.9 per cent in March 2018. Citing sources, a report in ThePrint claimed that to lower the circulation printing of Rs 2000 banknotes has been stopped. Replying to a question whether the government was considering withdrawal of Rs 2,000 notes, Minister of State for Finance Pon Radhakrishnan in the Lok Sabha said, "there is no such proposal".