Government says no decision regarding Rs 2,000 note production recently

Government says no decision regarding Rs 2,000 note production recently

His comments came in the wake of media reports that the government has stopped the printing of the two thousand rupees currency notes.

While Garg cleared the air around printing of Rs 2,000 notes, there have been several reports in the past which indicate that Rs 2,000 notes, released after demonetisation, is not necessary anymore.

The Reserve Bank of India has reduced to a minimum the printing of currency of Rs 2,000 denomination, PTI reported on Thursday, quoting an unidentified Ministry of Finance official. The income tax department also seized a huge number of Rs 2,000 notes during this period.

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When Govt. had banned Rs 1000 and Rs 500 currency notes in 2016, there was criticism and controversy over their decision to introduce Rs 2000 currency notes, which will further aid black money and corruption.

"There has been no recent decision regarding Rs 2,000 note production", Garg said in his tweet.

The old 500/1000 bank notes that were scrapped in November 2016 accounted for around 86 per cent of the total currency in circulation at that time.

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The decision comes on the back of suspicion in the Modi government that the high-denomination banknote was being used for hoarding, tax evasion and money laundering.

To compensate, the printing of Rs 500 notes has been increased.

As of March 2018, the total value of the currency in circulation was Rs 18.03 lakh crore, of which Rs 6.73 lakh crore, or 37%, was in Rs 2,000 notes, and Rs 7.73 lakh crore, approximately 43%, in Rs 500 notes. The remaining was in the lower denominations. Replying to a question whether the government was considering withdrawal of Rs 2,000 notes, Minister of State for Finance Pon Radhakrishnan in the Lok Sabha said, "there is no such proposal". In March 2018, it was recorded at 37.3 per cent, a fall of almost 13 percentage points from 50.2 per cent in March 2017.

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