The government
has no plans to stop circulation of the ₹2000 currency notes.
Anurag Singh
Thakur, Minister of State for Finance & Corporate Affairs has stated this
in a wriiten reply to a question in Rajya Sabha today.
In reply to the
question of whether the Government is contemplating to stop circulation of the ₹2000
notes in phased manner, the Minister stated that there is no such proposal with
the Government.
₹2,000 bank notes account for about
one-third of currency in circulation in value terms. They were circulated by
the Reserve Bank of India (RBI) in November 2016 after demonetisation of ₹500
and ₹1,000
notes.
Citing the
Annual Report of the Reserved Bank of India, the Minister further stated that
the share of value of ₹2,000
denomination banknotes in circulation ( ₹6,582 billion) to the
value of total notes in circulation ( ₹21,109 billion) was
31.18%, as on 31.03.2019.
An analysis of the search cases, conducted by Income Tax Department (ITD)
involving cash seizures of more than ₹5 crores in the last
three Financial Years, reveals that there is a declining trend visible in the
seizure of unaccounted cash in denomination of ₹2,000 notes. Out of the
total cash seized, the percentage of unaccounted cash seized in denomination of ₹2,000,
is 67.91%, 65.93% and 43.22% in Financial Years 2017-18, 2018-19 and the
current financial year, respectively.
Meanwhile,
Former Finance Secretary Subhash Chandra Garg said ₹2,000
notes are not much used for transaction and are less in circulation, hence there
is nothing wrong in replacing them with smaller currently notes.
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