The proportion of Rs 2000 banknotes in total Notes in Circulation (NIC) has fallen from 22.65% in 2020 to 13.8% by March 2022.
Digital Desk: In the midst of calls to ban Rs 2000 currency notes, the Central Government has clarified the position of the high-value notes in circulation. Sushil Kumar Modi, a BJP Rajya Sabha MP, has asked the government in Parliament to phase out Rs 2000 denomination notes gradually.
Modi told news agency ANI that there was information that people had hoarded Rs 2000 notes and were using them for "terror funding, drug trafficking, and stockpiling illicit money" after raising the issue during Zero Hour in Rajya Sabha.
Using sophisticated economies such as the United States, China, and Germany as examples, Modi suggested that the Central Government consider abolishing Rs 2000 notes gradually so that citizens have time to replace them with smaller amounts.
Meanwhile, in response to a question in the Lok Sabha, the Central Government stated on Monday (December 12) that no new Rs 2000 notes had been issued since 2018-19. The proportion of Rs 2000 banknotes in total Notes in Circulation (NIC) has fallen from 22.65% in 2020 to 13.8% by March 2022. Between 2020 and 2022, the percentage of Rs 500 notes climbed to 73.3% from 29.7%.
"The printing of banknotes of a specific denomination is decided by the Government of India in cooperation with the Reserve Bank of India (RBI) in order to maintain the desired denomination mix for supporting public transactional demand." From 2018-19 onwards, no new indent has been put with the presses for the printing of 2000 denomination notes. Furthermore, banknotes are taken out of circulation when they become soiled or disfigured," stated Pankaj Choudhary, Union Minister of State in the Ministry of Finance.
"On March 31, 2020, the value share of 2000 denomination banknotes in total Notes in Circulation (NIC) was 22.6%." As of 31.03.2022, the value share of 2000 denomination banknotes in the total NIC was 13.8%. The value proportion of 500 denomination banknotes in the total NIC has increased from 29.7% on 31.03.2000 to 73.3% on 31.03.2022. Currency demand is influenced by a number of macroeconomic factors, including economic growth and interest rate levels. "The rise in digital transactions has an impact on the demand for currency," he noted.
According to the Minister, there were 21,420 lakh pieces of Rs 2000 notes in circulation as of March 31, 2022, according to RBI data.
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