Reserve Bank of India has stopped printing the currency notes of Rs 2000 that were introduced after demonetization. The Rs 2000 notes were the replacement of Rs 1000 and Rs 500 that were demonetized in November 2016. According to some sources, the aim of stopping the printing of Rs 2000 notes is to slowly reduce the circulation of note.
According to The Print, 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. While according to SBI chief economist Soumya Kanti Ghosh, RBI is possibly keeping the supply of Rs 2000 banknotes low because the central bank wants to get the right mix. In the initial days of demonetization, RBI had focused on Rs 2000 notes to quickly increase currency in circulation. According to the RBI annual report in August 2018 stated that only 7.8 crore notes of Rs 2000 denomination were added in 2017-18, bringing the total to 336.3 crore Rs 2000 notes in circulation as of March 2018. The share of Rs 2000 notes in the total currency circulation has experienced a steep decline, from 50.2 percent in March 2017 to 37.3 percent in March 2018.
To compensate, the printing of Rs 500 notes has been increased. 958.7 crore Rs 500 notes were added to circulation in 2017-18, with 588.2 crore notes already in circulation since the previous year.
Tags : #RBI #2000 #Notes #Stop #Printing