Govt Stops Printing of Rs 2000 Note

New Delhi: Two years after the launch, the Narendra Modi Government has stopped printing the Rs 2000 notes to gradually stop their circulation.

According to The Print, the decision has been taken on the back of suspicion in the government that the currency note was being used for hoarding, tax evasion and money laundering.

The Rs 2000 notes were introduced in November 2016, days after the government announced the demonetisation move. The aim was to counter the massive cash shortage, but the move had its share of criticism as well as consumers complained about the difficulties faced exchanging such a high value currency note in the market. Traders had their share of woes as well.

The Modi government was criticised for bringing out a note of such a high denomination considering it had cancelled the Rs 1,000 note.

Opposition parties had argued that the Rs 2,000 note would further help money launderers and tax evaders, and backfire on one of the government’s stated aims for demonetisation — checking tax evasion and money laundering.

The income tax department also reported massive seizures of Rs 2,000 notes during this period.

As of March 2018, the total value of the currency in circulation was Rs 18.03 trillion, of which Rs 6.73 trillion, or 37 per cent, was in Rs 2,000 notes, and Rs 7.73 trillion, approximately 43 per cent, in Rs 500 notes. The remaining was in the lower denominations.

Reports suggest that the all-new Rs 1,000 currency note will be launched soon with enhanced security features and a new design.