Government to stop printing of Rs 2000 notes, says report

Government to stop printing of Rs 2000 notes, says report

Government to stop printing of Rs 2000 notes, says report

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.

The printing of Rs 2,000 currency note has been stopped and it will slowly be taken out of circulation, reports suggest.

The Rs 2000 note that was introduced after Prime Minister Narendra Modi, in a surprise move announced, demonetisation of all Rs 500 and Rs 1000 banknotes on November 8, 2016, is going out of circulation soon.

In a tweet, economic affairs secretary Subhash Chandra Garg said printing of notes is planned as per the projected requirement.

Many Indian cities had reported a massive cash shortage last April which was believed to be due to hoarding ahead of state elections and in the aftermath of the PNB-Nirav Modi bank fraud. He claimed that the government had chose to reduce the printing of Rs 2,000 notes at the time of their launch itself.

The squeeze in the circulation of the Rs 2,000 notes started some time back. However, the latest RBI report released in August 2018, revealed that only 7.8 crore notes of Rs 2000 denomination were added in 2017-18, taking the overall circulation to 336.3 crore, as of March 2018.

The circulation has already decreased and at most of the ATM's across the country, one is not getting the denomination of Rs 2000 rather everyone gets Rs 500, Rs 200 or Rs 100 in some circumstances.

There have been indications of phasing out the Rs 2,000 note.

The share of the Rs 2,000 notes in the total currency in circulation has come down as well: In March 2018, it was recorded at 37.3 per cent, a fall of almost 13 percentage points from 50.2 per cent as of March 2017. A year after, there was only a marginal increase in the number at 3,363 million notes.

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