Two thousand rupees are slowly being withdrawn from the country’s currency system. The government said on Monday that no new 2,000 rupee banknotes have been printed since April 2019 to reduce its hoarding and stop the circulation of black money in the economy.
As a result, the number of 2,000 rupee notes in the total banknotes in circulation in the country decreased from 3.27 percent to 2.01 percent. It is likely to decline further in the coming days.
Minister of State for Financial Affairs Anurag Thakur informed Lok Sabha that 3,362 million banknotes out of 2,000 were in circulation in 2018. However, as of February 26, 2021, only 2,499 million notes out of 2,000 were in circulation.
2,000 rupee notes came into circulation in November 2016 after the government announced the cancellation of circulation of the coin and the suspension of 500 and 1,000 rupees coins in an attempt to curb black money and counterfeit currencies.
The data show that after a year or two, the government began working to withdraw two thousand banknotes out of circulation. The role of banks is important in this direction. Most of the banknotes that come in bank branches are sent to the reserve bank rather than put up for circulation.