RBI reduces printing of Rs 2,000 notes to a minimum

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The Reserve Bank of India has reduced printing of currency of Rs 2,000 denomination to a minimum, PTI reported on Thursday. The government had introduced Rs 2,000 notes, post demonetization. The government had banned the old Rs 500 and the Rs 1,000 denominations on November 8, 2016.

According to the sources, the authorities have taken this decision because of suspicion that people are using it for tax evasion and money laundering.

The official at Ministry of Finance said, “The printing of 2,000 rupee notes has been substantially reduced. Authorities have decided to limit the printing of 2,000 currency notes to minimum. This is nothing new. The note was only for the purpose of “remonetization” following the demonetization exercise.”

However, the reduction in printing of Rs 2,000 notes does not mean they will become invalid. Instead, this denomination is merely likely to be phased out.

The Department of Economic Affairs Secretary Subhash Chandra Garg said, “We have more than adequate notes of Rs 2,000 in the system with over 35% of notes by value in circulation being of Rs 2,000. There has been no decision regarding 2,000 rupee note production recently.”

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