The printing of ₹2,000 banknote, introduced post-demonetisation in November 2016, has been reduced to the "minimum" by the Reserve Bank of India (RBI), a top Finance Ministry official said on Thursday.
When the Rs 2000 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. "At that time, to counter the massive cash shortage, the government flooded the country with new Rs 2,000 notes", as reported by The Print.
In a tweet, Garg said that there are more than adequate notes of Rs 2,000 in India's financial system.
The report further said that as per the Ministry of Finance in the Lok Sabha, the RBI had printed 16,957 million pieces of Rs 500 notes and 3,654 million pieces of Rs 2,000 notes as on 8 December 2017. Back then, the Rs 2,000 note was circulated in huge volumes used in order to mitigate the cash shortage that arose due to the note ban.More news: Fernandinho hails record-breaker Bernardo for Man City win: Pure class
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According to the report, while the printing of the notes has been stopped doesn't mean that it will become invalid but will gradually be phased out. Citing sources, a report in ThePrint claimed that to lower the circulation printing of Rs 2000 banknotes has been stopped.
The critics included bankers, with Uday Kotak, the managing director of Kotak Mahindra Bank, questioning the government's move to bring in Rs 2,000 notes while phasing out Rs 1,000 notes.
The high-value currency was introduced in November 2016, when the government scrapped the old 500/1000 bank notes. In March 2018, it was recorded at 37.3 per cent, a fall of almost 13 percentage points from 50.2 per cent in March 2017.
"Printing of notes is planned as per the projected requirement".