Two years after demonetisation, the Reserve Bank of India (RBI) has scaled down the printing of Rs 2,000 note, signalling that its level in circulation will be brought down to the minimum. The Rs 2,000 currency notes were introduced to remonetise after the noteban.
According to news agency PTI, a Finance Ministry official said that the printing of Rs 2000 notes has been substantially reduced and it has been decided to limit the printing of 2000 currency notes to minimum.
The official also said that it was decided during the launch of Rs 2,000 note that its printing would be “scaled down”. Earlier, this year media reports said that cash crunch was witnessed in some states due to the fewer number of Rs 2,000 notes available in circulation. Rumours of Rs 2,000 note being withdrawn from the circulation then also started spreading.
However, then the government then had clarified that there was no proposal to withdraw the high-value notes.
In April, some states faced cash crunch as ATMs ran dry, which government said was due to an “unusual spurt in demand” due to the financial year end and festivities. The cash crunch was blamed on the inadequate number of Rs 2,000 notes and that ATM cassettes were not configured to dispense smaller Rs 200 notes.
According to the RBI data, there were 3,285 million pieces of Rs 2000 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 2000 notes accounted for 37.3 per cent, down from 50.2 per cent at end-March 2017.