The government on Friday indicated that the production of Rs 2,000 notes which came into existence post demonetisation in November 2016, would be halted for the time being as there was sufficient currency in circulation.
Economic affairs secretary Subhash Chandra Garg, amidst speculations claiming that the central government plans to phase out the Rs 2000 note, came out with a clarification on Twitter, saying, “We have more than adequate notes of Rs 2,000 in the system with over 35 per cent of notes by value in circulation being of Rs 2,000. There has been no decision regarding 2,000 rupee note production recently”.
Printing of notes is planned as per the projected requirement. We have more than adequate notes of Rs 2000 in the system with over 35% of notes by value in circulation being of Rs 2000. There has been no decision regarding 2000 rupee note production recently.
— Subhash Chandra Garg (@SecretaryDEA) January 4, 2019
It is important to note that the Rs 2000 note continues to be a legal bank note, only its fresh production has been halted as there is enough supply of this note. RBI prints banknotes of various denominations based on current availability of particular denominations, and to replace worn out currency notes.
Soon after the sudden decision by the Modi Government to ban old Rs 500 and Rs 1000 currency notes which accounted for almost 86 per cent of the total currency in circulation back then in 2016, the Reserve Bank of India had come out with the Rs 2000 note alongside a new Rs 500 note as a part of the demonetization drive.
