Govt may stop printing Rs 2,000 notes, enough stock in circulation

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Representational Image
Representational Image

New Delhi : The government on January 4 gave the hint of not printing Rs 2,000 bank notes, as of now. The kinds of notes were introduced post-demonetisation in November 2016. Source close to the development confirms that there is enough stock in circulation and no decision have been taken on printing more notes.

It must be known that printing of notes is planned per projected requirement and now, over 35 per cent of the notes in circulation are those of Rs. 2,000, Economic Affairs Secretary Subhash Chandra Garg said.

"We have more than adequate notes of Rs. 2,000 in the system... There has been no recent decision regarding 2000-rupee note production," said Mr Garg.

On Thursday, an official report had mentioned that the government had stopped printing 2,000 rupee notes and planned to phase it out.

A finance ministry official said last evening that the printing of the notes, which debuted after Prime Minister Narendra Modi's shock demonetisation move in 2016, had been reduced to the "minimum" by the Reserve Bank of India (RBI).

In 2016, soon after the overnight ban on Rs 500 and 1,000 notes which wiped out 80 percent of the currency in circulation, RBI came out with the Rs 2,000 note and a new look Rs 500 note.

When the Rs 2000 note was launched, it had been decided that the printing would be "scaled down", since the new high currency value note was meant for "remonetisation", said the official.

"The printing of 2,000 rupee notes has been substantially reduced. It has been decided to limit the printing of 2,000 currency notes to minimum. This is nothing new," the official said.