Rs 2,000 notes: Know what the govt has to say on circulation

More than adequate Rs 2,000 notes in system, says economic secretary
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New Delhi: The government has not yet decided on further printing of 2,000 rupee notes as there are more than adequate notes of this denomination in the system, economic affairs secretary Subhash Chandra Garg said.

Printing of notes is planned as per requirement, and now, Rs 2,000 notes constitutes 35 per cent by value of the total circulation, Garg added.

"There has been no recent decision regarding Rs 2,000 note production," Garg said in a tweet.

The comment comes a day after a top finance ministry official said the printing of Rs 2,000 banknote, introduced post-demonetisation in November 2016, has been reduced to the 'minimum' by the Reserve Bank of India.

Soon after the sudden decision to ban old Rs 500-1,000 currency notes by the government, the RBI had come out with the Rs 2,000 currency note along with a new look Rs 500 note as part of its massive remonetisation exercise.

The senior official said the RBI and the government from time to time decides on the quantum of currency to be printed on the basis of money in circulation.

When the Rs 2,000 note was launched, it was decided that the printing would be "scaled down" going forward, since the new high currency value note was meant for meeting the remonetisation need.

"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 on Thursday.

According to the RBI data, there were 3,285 million pieces of Rs 2,000 notes in circulation at end-March 2017. A year after (on March 31, 2018), there was only a marginal increase in the number at 3,363 million pieces.

Of the total currency in circulation amounting to Rs 18,037 billion at end-March 2018, Rs 2,000 notes accounted for 37.3 per cent, down from 50.2 per cent at end-March 2017.

The old 500-1,000 bank notes that were scrapped in November 2016 accounted for around 86 per cent of the total currency in circulation at that time.

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