The Reserve Bank of India (RBI) has decided to withdraw the 2000 rupee note from circulation. The move is expected to have a positive impact on the country’s economy.
The Reserve Bank of India (RBI) has decided to withdraw the 2000 rupee note from circulation. The move is expected to have a positive impact on the country’s economy.
Why was the 2000 note banned in India?
2000-rupee note
The Rs 2,000 currency notes are currently in circulation with a total value of Rs 15.44 lakh crore as on March 31, 2018. The notes were introduced after demonetisation of old Rs 500 and Rs 1,000 notes in November 2016.
In January 2017, RBI issued new currency notes with enhanced security features including larger size and new design of numerals that are easy to check even by visually impaired persons. The year 2017-18 saw an increase in supply of new series banknotes with enhanced security features. About 4,310 million pieces were printed during 2017-18 as against 3,300 million pieces during 2016-17.
Since November 2016 when demonetisation was announced by Prime Minister Narendra Modi, more than 99 per cent of the old high denomination notes have returned to banks which shows that people welcomed this bold step towards curbing black money.
Now that almost all high denomination currency has been withdrawn from circulation and additional security features have been added for greater authenticity, it has become imperative for RBI to withdraw these banknotes from circulation as soon as possible so that counterfeit or fake banknotes do not enter into banking channels.
