Printing of Rs 2000 currencies are stopped to reduce circulation in the country

Guwahati: This has been hinted by a highly-placed government source that the Rs 2000 notes are slowly going to experience a reduction in its circulation as the printing of the currency had already been stopped. However, this has also been confirmed by the source that the circulation will only be reduced due to the stop in its printing, but that does not mean that the note will be invalid. The currency will remain valid and will continue being in use.

Although the central bank and currency-issuing agency Reserve Bank of India were being asked for its response on the news, the agency did not make any comment. The strength of the news will be cleared only when the RBI responds to this.

It was in November 2016 when the Rs 2000 currency was first introduced when Prime Minister Narendra Modi suddenly announced the demonetization of Rs 500 and Rs 1000 currencies on November 8. The sudden decision on demonetization of these particular notes was being taken as an effort to practice a crackdown on black money. It was then when the new Rs 2,000 notes were made available all over the country in a great deal.

Till March 2018, the total value of the Rs 2000 currency in circulation was Rs 6.73 lakh crore and Rs 7.73 lakh crore was in Rs 500 notes.

Ever since the Rs 2,000 note was introduced, the Narendra Modi government had been facing wide criticisms as the denomination s quite high for being widely used in place of the already prevailing currency of Rs 1,000 note. The opposition had also added that the introduction of such a high denomination will only ease the money launderers and tax evaders. This would rather create a problem for the government to practice a check on tax evasion and money laundering. A similar thing happened in April last year when all of a sudden, many Indian cities went through a massive shortage of cash.

The shortage of cash, as suspected by the government, was due to the money holding and stocking ahead of state elections. The PNB-Nirav Modi bank fraud case too made people stock money, which resulted in a massive seizure of Rs 2,000 notes during this period.

Also read: BSF apprehends Fake Indian Currency Notes (FICN ) racketeer in Dhubri district