RIP Rs 2000 Note? Govt. Stops Printing Rs 2000 Note To Curb Black Money; Will It Remain Legal?
Govt. has admitted that Rs 2000 currency note helps black money circulation
And finally, the rumors are coming true.
India has stopped printing Rs 2000 currency notes, after two years of its launch during demonetization drive.
And the logic is simple: Stop black money and corruption.
Rs 2000 Printing Stopped
As per a report by The Print, it has been revealed that Govt. has stopped printing Rs 2000 currency note, and it will be gradually phased out from the circulation.
Out of Rs 18.03 trillion of currency in circulation right now, 37% belong to Rs 2000 currency, amounting to Rs 6.73 trillion. 43% of the overall currency, whose value is 7.73 trillion is in Rs 500 currency note.
Govt of India: Not Stopped, But Scaled Down
Meanwhile, reacting to this news, Govt. of India has informed that they have scaled down the printing of Rs 2000 currency note, and have not stopped it entirely.
There are a total of 3,285 million pieces of Rs 2000 currency note right now.
Former Economic Affairs Secretary Shaktikanta Das had earlier told that Rs 2000 currency note can be banned, but Finance Minister Arun Jaitley has informed that they have no plan to ‘ban’ currency note.
We had earlier reported that RBI has stopped placing new orders of Rs 2000 currency note, and now, this is proved that Govt. understands Rs 2000 currency note is not a feasible option.
Why Rs 2000 Currency Is Being Stopped?
The most logical explanation is that, it aids black money circulation and corruption.
Since Rs 2000 is the biggest denomination, it becomes easy to pass large amount of cash with less number of notes, and avoid suspicion.
Most of the black money being circulated right now is in Rs 2000 currency notes, and Govt. wants to stop this.
Controversy Over Rs 2000 Note?
When Govt. had banned Rs 1000 and Rs 500 currency notes in 2016, there was criticism and controversy over their decision to introduce Rs 2000 currency notes, which will further aid black money and corruption.
Finance czar Uday Kotak had publically stated that it would have been lot simpler, if Govt. had avoided Rs 2000 currency note, and instead, make Rs 500 as the highest denomination.
He said last month: “I think we would have had significantly better outcomes, if we had just thought about simple things. If you are taking out Rs 500 and Rs 1,000 notes, why would you introduce Rs 2,000 notes?
We will keep you updated, as more details come in.