New Delhi: The Reserve Bank of India (RBI) has stopped printing Rs. 2,000 notes launched during the demonetisation days in November 2016. The move, as per a report, quoting unnamed government sources, is being aimed at slowly reducing the note’s circulation.
The report also states that the decision also comes amid suspicion that the Rs. 2,000 note is being used for money laundering, hoarding and tax evasion. The cut in circulation doesn’t translate into the note being deemed invalid. To compensate, the printing of Rs. 500 notes has been increased.
The Rs. 2,000 note, along with the new Rs. 500 note, was introduced in November 2016 to replace the demonetised Rs. 1,000 and Rs. 500 notes and to deal with the acute currency shortage. Opposition parties had criticised the introduction of these notes as a higher denomination note would only make it easier for people to hoard money.
The critics also included bankers who questioned the government’s move to bring in Rs. 2,000 notes to replace Rs. 1,000 notes. In April 2018, there was an acute shortage of cash. The government suspected that the cash may have been hoarded ahead of state elections and in the aftermath of the Nirav Modi scam.
This post was published on January 4, 2019 6:38 pm