The Reserve Bank of India has revealed that the printing of Rs 2,000 currency notes has been stopped and not even a single high-value note has been printed this financial year. However, the chances of withdrawing Rs 2,000 note was speculated in a high number, right from 2016.
The Rs 2,000 note has been introduced in 2016 along with new Rs 500 notes after the government put a ban on the existing Rs 500 and Rs 100 notes. It is also noted that 3,542.991 million notes of Rs 2,000 were printed during the financial year 2016-17. However, the numbers came down to 111.507 million notes in 2017-18 and were further reduced to 46.690 million notes in the year 2018-19.
The new notes have been introduced earlier to reduce the cash crunch caused by demonetization and make it easier to track fake currency because of less number of Rs 2000 notes in the country. Therefore, smaller denominations such as Rs 100, Rs 50, Rs 20, Rs 10 will be left as it is to carry out small transactions. Ex-Finance minister late Arun Jaitley has also requested the citizens not to use paper card to make buy stuff or make transactions with a value greater than Rs 5000.
High circulation of Rs 2,000 notes may defeat the government’s motives as they are easier to use for black money, corruption and smuggling/illegal purposes. There were 3,363 million high-value notes in circulation at the end of March 2018 – 3.3% of the total currency in circulation in terms of volume and 37.3% in terms of value. The number was reduced to 3,291 million in FY 2019 – 3% and 31.2% of volume and value, respectively, of the total money in circulation.
The National Investigation Agency (NIA) claimed that ‘high quality’ fake currency notes have resurfaced with Pakistan being the main source. Over Rs 50 crore of fake currency notes have been seized in the past three years, the government had said in June. The paper quality of 2000 INR hinted that it is just a temporary measure. Existing government’s belief on digital currency was – the less the physical cash, less the corruption, Black Money & Terrorism.
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