Information|2,000 Banknotes: A fading existence as RBI chooses to withdraw from flow

A guy holds Rs 2000 currency notes at a bank in New Delhi, Tuesday, May 23, 2023. The Reserve Bank of India has actually revealed for withdrawal of Rs 2,000 currency notes from blood circulation, and existing notes in flow can either be transferred in bank accounts or exchanged by September 30|Picture Credit: PTI Photo/Kamal Kishore The Reserve Bank of India (RBI)’s transfer to withdraw 2,000 banknotes from flow on May 19, 2023, was a plain tip of the ghosts of demonetisation.In a news release, the reserve bank validated the relocation by mentioning that the banknote, which was presented to satisfy the currency requirement after 500 and 1,000 banknotes were withdrawn in November 2016, had actually satisfied its goal. The RBI likewise mentioned its ‘Clean Note Policy’ to compete that the 2,000 notes were nearing completion of their approximated life expectancy of 4-5 years as most of them were released prior to March 2017. Its declaration likewise stated that 2,000 notes were not frequently utilized for deals which banknotes of other denominations were appropriate to fulfill the need. Since March 2023, the share of 2,000 notes in the overall worth of banknotes in blood circulation had actually dipped to 10.8% compared to the 50% share they had by the end of March 2017 (Chart 1). Over three-fourths or 77% of the overall worth of banknotes are now represented by 500 banknotes. This remains in plain contrast to the pre-demonetisation duration where 2 high-value currency notes– 500 and 1,000– together represented the lion’s share of the banknotes in flow. Chart appears insufficient? Click to eliminate AMP mode As Chart 2 programs, the volume of 2,000 banknotes in blood circulation started going through a progressive decrease after peaking in 2018 at 33,630 lakh pieces. By the end of March 2023, the volume had actually come by 46% to 18,111 lakh pieces. The printi
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