More Than Adequate 2,000 Rupee Notes In System, Says Government

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Former Economic Affairs Secretary Shaktikanta Das had earlier told that Rs 2000 currency note can be banned, but Finance Minister Arun Jaitley has informed that they have no plan to "ban" currency note.

"There has been no decision regarding 2000 rupee note production recently", he said.

The Rs 2,000 note was introduced in November 2016 after the Narendra Modi-led government demonetised Rs 1,000 and Rs 500 denominations as part of an exercise pitched as a crackdown on black money. Besides 2000 rupees notes, a new 500 rupee note was also launched, but now, the printing of 2000 rupee notes have been reduced reportedly.

This comes a day after a top financial ministry official commented that the printing of Rs 2000 banknotes, introduced post-demonetisation in November 2016, has been reduced to the "minimum" by the Reserve Bank of India (RBI). However, the government wants to slowly phase out the currency note. The remaining is in lower denominations. This was immediately followed with the introduction of Rs 2,000 note by RBI the same evening.

The critics included bankers, with Uday Kotak, the managing director of Kotak Mahindra Bank, questioning the government's move to bring in Rs 2,000 notes while phasing out Rs 1,000 notes. 43% of the overall currency, whose value is 7.73 trillion is in Rs 500 currency note. There has been a subsequent reduction in the printing of Rs 2,000 notes but it has not yet been stopped.

There are a total of 3,285 million pieces of Rs 2000 currency note right now. Of the total currency in circulation amounting to Rs 18,037 billion at the end of March 2018, Rs 2000 notes accounted for 37.3 per cent, down from 50.2 per cent at the end of March 2017.

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