Arun Jaitley says there’s no proposal to withdraw Rs2,000 notes

Arun Jaitley says that as on 3 March 2017, the currency in circulation was Rs12 trillion and as on 27 January, it was Rs9.92 trillion


The Rs2,000 bank notes were introduced along with new Rs500 currency following the withdrawal of old Rs500 and Rs1,000 notes in November last year. Photo: Mint
The Rs2,000 bank notes were introduced along with new Rs500 currency following the withdrawal of old Rs500 and Rs1,000 notes in November last year. Photo: Mint

New Delhi: Finance minister Arun Jaitley on Friday said there is no proposal to withdraw the Rs2,000 notes that were introduced post demonetisation.

The Rs2,000 banknotes were introduced along with new Rs500 currency following the withdrawal of old Rs500 and Rs1,000 notes from 9 November 2016.

“There is no proposal to withdraw the Rs2,000 denomination banknote,” the minister said in a written reply in the Lok Sabha.

Jaitley further said the Rs500 and Rs1,000 notes returned to currency chests of the RBI amounted to Rs12.44 trillion as on December 10, 2016.

The data obtained in this regard would need to be reconciled with the physical cash balances to eliminate counterfeit notes, accounting errors and possible double counts after which only the final figures will be arrived at, he said.

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He added that as on 3 March 2017 the currency in circulation was Rs12 trillion and as on 27 January, it was Rs9.921 trillion.

Jaitley said the cash recall seeks to create a new “normal” wherein the GDP will be bigger, cleaner and real.

“This exercise is part of the government’s resolve to eliminate corruption, black money, counterfeit currency and terror funding. This exercise has resulted in an increase in deposits with banks. This will facilitate reduction of interest rates and provide more headroom to banks to expand their credit base,” the minister said.

Following demonetisation, several restrictions were imposed on withdrawal from banks as well as ATMs. The restrictions have been gradually removed.

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