New Delhi, January 4: Nearly two years after its introduction, the Reserve Bank of India (RBI) has reportedly stopped the printing of Rs 2,000 notes. The higher denomination notes were launched by the Narendra Modi government during the demonetisation days in November 2016 when old Rs 500 and Rs 1,000 notes were scrapped as a crackdown on black money. According to top sources, the squeeze in the printing of the notes has been stopped to slowly reduce its circulation in the market. The government is of the opinion that high denomination banknote is being used for hoarding, tax evasion and money laundering. Rs 2000 and Rs 500 Notes’ Printing Data Post Demonetisation Should Be Disclosed: CIC. 

A top finance ministry official was quoted by PTI saying that the printing of 2000 rupee notes has been substantially reduced and has been decided to limit the printing of 2000 currency notes to a minimum. The official further added saying that when the Rs 2000 note was launched, it was decided that the printing would be “scaled down” going forward, since the new high currency value note was meant for meeting the remonetisation need. You Cannot Exchange Rs 200 & Rs 2,000 Notes? Torn & Mutilated Currency May Become Impossible to Get Exchanged in RBI & Banks.

The RBI and the government from time to time decide on the quantum of currency to be printed on the basis of money in circulation. According to reports, Rs 2,000 notes which are already in circulation currently will continue to be legal tender and will be taken out of circulation in a phased manner. However, the RBI has not released any official comment yet on taking Rs 2,000 currency notes out of circulation.

The total currency in circulation amounting to Rs 18,037 billion at end-March 2018, Rs 2000 notes accounted for 37.3 per cent, down from 50.2 per cent at end-March 2017, a report by PTI stated.  According to an RBI data, there were 3,285 million pieces of Rs 2000 notes in circulation at end-March 2017.  Reports inform that a year after (on March 31, 2018), there was only a marginal increase in the number at 3,363 million pieces.

(The above story first appeared on LatestLY on Jan 04, 2019 10:09 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).