New Delhi: The Reserve Bank has stopped printing ₹2,000 notes to slowly phase it out of circulation, a top government official told ThePrint.
No new ₹2000 note was printed in the year 2019-20 according to RBI data.
These notes, however, are valid as currency.
The high-denomination currency introduced in November 2016 after demonetisation is reportedly being rolled back since it is being used for hoarding, tax evasion and money laundering. The central government was earlier criticized by the opposition and some bankers, who had argued that it would backfire on one of the government’s stated aims for demonetisation.
While 37 per cent of total currency (₹18.03 lakh crore) in March 2018 was ₹2000 notes, 43 per cent was in ₹500 notes. The share of the ₹2000 note had come down to 22 per cent in March 2020.
Cash shortage happened in the market in April 2019 ahead of state elections and also the aftermath PNB-Nirav Modi bank fraud.
Income tax officials seized massive amounts of ₹2,000 notes during this period.
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