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A demand to gradually phase out 2,000 currency notes was made in the Rajya Sabha today. BJP MP Sushil Kumar Modi said that citizens holding such banknotes should be given two years to deposit it.

"The government should gradually phase out the 2,000 rupee note. Citizens should be given 2 years to exchange their holdings of the 2,000 rupee notes," BJP MP Sushil Kumar said.

Soon after the government withdrew 500 and Rs1,000 notes as legal tenders, the 2,000 banknotes were introduced in November 2016. While a new 500 note was printed, 1,000 currency notes were discontinued.

The Centre defended its decision to demonetise 500 and 1,000 currency notes in 2016 as it said that it was a major step to fight the menace of fake currency notes, terror financing, black money and tax evasion.

Official data have shown that even six years after demonetisation done by the Prime Minister Narendra Modi-led government, the currency with public remains at an all time high. Cash usage remains robust with public wherein it has been made known that currency with public stands at a new high of 30.88 lakh crore as of 21 October.

Currency with public refers to notes and coins used by people to transact, settle trades, and for buying goods and services. The figure is arrived at after deducting cash with banks from the currency in circulation.

Cash usage has been steadily rising in the economy, even as newer and far convenient digital alternatives of payments have become popular amid the COVID-19 pandemic

-With agency inputs

 

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