Amid reports that Rs. 2000 notes are being phased out, on Friday, the government of India said that there was “no decision” on printing more of the notes are there are “more than adequate” in the system.
Printing of Rs. 2000 notes are planned as per projected requirement and presently more than 35 percent of the notes in the circular are those of Rs. 2000, said Economic Affairs Secretary Subhash Chandra Garg.
Mr. Garg further said that “we have more than adequate notes of Rs. 2,000 in the system… There has been no recent decision regarding 2000-rupee note production.”
On Thursday, a report said that the government had stopped printing Rs. 2000 notes and planned to phase it out.
An official of the Finance Ministry said that last evening the printing of notes, which debuted after Prime Minister Narendra Modi’s shock 2016 demonetization move, which had been reduced to “minimum” by the RBI (Reserve Bank of India).
Soon after the overnight banned on Rs. 1000 and Rs. 500 notes that wiped out 80 percent of the currency in circulation, RBI came out with Rs. 2000 notes and a new version of Rs. 500 notes.
When new Rs. 2000 notes were introduced, it had been decided that the printing would be “scaled down” as the new high-currency value note was meant for “remonetization”, reports the official.
The official further said that “The printing of 2,000 rupee notes has been substantially reduced. It has been decided to limit the printing of 2,000 currency notes to a minimum. This is nothing new.”
As per the RBI data, there were 3285 million Rs. 2000 notes in circulation in March 2017. After a year there was only a marginal increase in the number at 3363 million Rs. 2000 notes.