The government has stopped printing Rs 2,000 currency notes in its bid to gradually stop their circulation, ThePrint reported on Thursday.
"The printing of 2,000 rupee notes has been substantially reduced", the official said. He claimed that the government had chose to reduce the printing of Rs 2,000 notes at the time of their launch itself.
Soon after the sudden decision to ban old ₹500/₹1,000 currency notes by the government, the RBI had come out with the ₹2,000 currency note along with a new look ₹500 note as part of its massive remonetisation exercise. Another report, by PTI, had said the printing of the Rs 2,000 banknote, introduced post-demonetisation in November 2016, had been brought down to a minimum.
The introduction of the currency note had drawn severa criticism in the wake of the Government demonetising the currency notes of the denomination of ₹1000 in November, 2016. It has been chose to limit the printing of Rs 2000 notes to a minimum.
The Secretary of the Department of Economic Affairs (DEA), Subhash Chandra Garg, said that no decision has been taken with regards to the production of Rs. 2000 currency notes. The remaining was in the lower denominations. However, the cut in circulation doesn't translate into the note being deemed invalid. The government suspected cash hoarding ahead of state elections, as well as stocking of money by people in the aftermath of the PNB-Nirav Modi bank fraud. Around Rs 6.73 lakh crore or 37 percent of the currency is in Rs 2,000 notes and Rs 7.73 lakh crore or 43 percent is in Rs 500 notes.
The Reserve Bank of India (RBI), the central bank and lone authority on issuing currency, has not released any official comment yet on taking Rs 2,000 currency notes out of circulation.
"Printing of notes is planned as per the projected requirement". India added 958.7 crore Rs 500 notes in 2017-18, with 588.2 crore notes in circulation the previous year.