Published: Sat, January 05, 2019
Money | By Hannah Jacobs

RBI Scales Down Printing of Rs 2000 Currency Note to 'Minimum'

RBI Scales Down Printing of Rs 2000 Currency Note to 'Minimum'

"The printing of Rs 2000 notes has been substantially reduced".

The decision has been taken on the back of suspicion in the government that the currency note was being used for hoarding, tax evasion and money laundering.

In a tweet, Garg said that there are more than adequate notes of Rs 2,000 in India's financial system.

When the Rs 2,000 note was introduced, the Narendra Modi government was criticised for bringing out a note of such a high denomination considering it had cancelled the Rs 1,000 note.

The news, as reported by The Print, says that the Reserve Bank of India has stopped printing the note, although that doesn't mean that the Rs 2000 note will not be valid, rather the circulation will get lower and eventually, will be phased out. "There has been no decision regarding 2,000 rupee note production recently", he said. The total value of such notes translates into Rs 15,787 billion.

Out of Rs 18.03 trillion of currency in circulation right now, 37% belong to Rs 2000 currency, amounting to Rs 6.73 trillion.

The report further said that as per the Ministry of Finance in the Lok Sabha, the RBI had printed 16,957 million pieces of Rs 500 notes and 3,654 million pieces of Rs 2,000 notes as on 8 December 2017. The note was introduced post-demonetisation in November 2016.

"Printing of notes is planned as per the projected requirement". The old Rs 500 and Rs 1000 bank notes that were scrapped in November 2016 accounted for around 86% of the total currency in circulation at the time.

According to RBI data, there were 3,285 million pieces of Rs 2,000 notes in circulation at the end of March 2017.

ThePrint's YouTube channel is now active and buzzing.

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