No proposal to stop circulation of ₹2,000 currency notes: Government


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.

Rs 2000 Notes


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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