RBI said to scale down printing of Rs 2000 note to minimum
The Rs 2000 note was launched for meeting the remonetisation needs after the old Rs 500/1000 note were banned due to demonetisation
New Delhi: The printing of Rs 2000 note, introduced after demonetisation on 8 November 2016, has been reduced to a “minimum” by the Reserve Bank of India (RBI), a top finance ministry official said Thursday. Soon after the sudden decision to ban old Rs 500/1000 currency notes by the government, RBI had come out with the Rs 2000 note along with a new Rs 500 note as part of its remonetisation exercise.
According to the finance ministry official quoted above, the central bank and the government decide from time to time the quantum of currency notes to be printed on the basis of money in circulation. When the Rs 2000 note was launched, it was decided that the printing would be “scaled down” going forward, since the new high-value currency note was meant for meeting the remonetisation needs.
“The printing of Rs 2000 notes has been substantially reduced. It has been decided to limit the printing of Rs 2000 notes to a minimum. This is nothing new,” the official said.
According to RBI data, there were 3,285 million pieces of Rs 2000 notes in circulation at end-March 2017. A year after, on 31 March 2018, there was only a marginal increase in that number to 3,363 million pieces.
Of the total currency in circulation amounting to Rs 18,037 billion on 31 March 2018, Rs 2000 notes accounted for 37.3%, down from 50.2% on 31 March 2017.
The old Rs 500/1000 notes that were scrapped due to demonetisation accounted for around 86% of the total currency in circulation at that time.
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