The 2000 notes are slowly disappearing from the markets. Much notes of 2000 were seen right after the demonetisation in India but now with the normalisation of cash situation RBI has slowed down the printing of 2000 notes. According to an SBI report, the Reserve Bank of India may be holding the 2000 notes of might have stopped the printing.
RBI introduced the Rs.2000 note during Demonetisation
The 2000 currency note was brought into existence by the Indian government during its demonetisation drive in end of year 2016. The government announced the demonetisation of Rs.500 and Rs.1000 notes on November 8, 2016. The Rs.500 and Rs.1000 notes accounted for 86 percent of the total Indian currency in circulation. Demonetisation by the government resulted in the huge shortage of cash and people were seen in large queues at banks to deposit the old currency notes.
During the demonetisation drive, RBI introduced new 500 notes and 2000 notes. The new currency was printed in ample amount to normalise the situation of liquidity shortage. Even in March 2017, there were ample amount of Rs.2000 notes in circulation. Comparing the data presented in Loksabha with the date provided by RBI in its report, SBI said that the value of 2000 notes in the circulation was Rs.13,324 billion on December 8.
Not All Rs.2000 Notes Brought into Circulation
The SBI report further said that RBI has printed 16,957 million of Rs.500 notes and 3,654 million of Rs.2000 notes on December 8. The total value of such notes amount to Rs.15,787 billion. This clearly indicates that the remaining amount of Rs.2000 notes (Rs 15,787 billion – Rs 13,324 billion = Rs 2,463 billion) were not supplied for circulation in the market.
The 2000 currency note is a high value denomination, so it is difficult to use it in small day to day transactions. It seems that RBI introduced the Rs.2000 notes in December 2016 to handle the cash crunch situation. RBI may have slowed down the printing of high denomination notes as the cash situation is now in control. The Central bank has recently introduced another low currency note of Rs.200.