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Rs 2,000 Notes Withdrawn from Circulation: RBI

2000 Rupee Note News Live: RBI to withdraw Rs 2,000 notes from circulation, will continue as legal tender. How can you exchange your Rs 2,000 notes: All you need to know.

The Reserve Bank of India (RBI) has stopped printing Rs 2,000 notes since April 2019, according to a written reply by the minister of state for finance Anurag Thakur in Lok Sabha. The move is aimed at preventing the hoarding of the high-value currency and curbing the circulation of black money in the economy.

The minister informed the Parliament that 3,362 million currency notes of Rs 2,000 denomination were in circulation on March 30, 2018. However, as of February 26, 2021, only 2,499 million pieces of Rs 2,000 notes were in circulation. While the currency in terms of volume reduced from 3.27 per cent to 2.01 per cent, that in terms of value fell from 37.36 per cent in March 30, 2018 to 17.78 per cent in 2021.

Rs 2,000 notes came into circulation in November 2016 after the government announced demonetisation and withdrew notes of Rs 500 and Rs 1,000 in an attempt to curb black money and fake currencies. While a new Rs 500 note was printed, Rs 1,000 currency notes were discontinued. Instead, Rs 2,000 note was introduced.

However, the number of Rs 2,000 notes printed by the RBI has been declining over the years. In 2019, the RBI had stated that 3,542.991 million notes of Rs 2,000 were printed during the financial year 2016-17 (April 2016 to March 2017). However, the number kept on reducing and only 111.507 million notes were printed in 2017-18, which further reduced to 46.690 million notes in the year 2018-19.

According to bankers, the RBI is shifting focus away from the Rs 2,000 note as the denomination was printed in large numbers to cope with the replacement of demonetised notes. The government has also said that there is no proposal to withdraw Rs 2,000 notes from circulation.

The share of high-value notes – the Rs 500 and Rs 2,000 denomination bank notes – continues to remain very high, constituting 85.7 per cent of the total currency in circulation as on March 31, 2021. In value terms, the Rs 500 note constitutes 68.4 per cent of the total currency notes in circulation as at the end of March 2021, while the Rs 2,000 notes constitute 17.3 per cent in value.

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