Mumbai: It isn’t fairly demonetisation however the Reserve Financial institution of India appears like it’s phasing out the Rs 2000 foreign money observe if cues out there in its annual report 2019-20, launched on Tuesday, are any indication.
The annual report mentioned the Rs 2000 denomination observe, launched throughout demonetisation in 2016, was not printed in any respect throughout 2019-2020.
The variety of Rs 2,000 foreign money notes in circulation has come down from 33,632 lakh items on the finish of March 2018 to 27,398 lakh items at finish of March 2020.
The Rs 2,000 notes constituted 2.four per cent of the entire quantity of notes at end-March 2020, down from 3.Three per cent at end-March 2018.
In worth phrases additionally, the share has got here right down to 22.6 per cent at end-March 2020 from 37.Three per cent on the end-March 2018. It was 50 per cent in 2017, as the foremost focus that yr was on remonetising the financial system.
Alternatively, the circulation of Rs 500 and Rs 200 notes has gone up considerably, each by way of quantity and worth over the three years starting 2018.
A senior banker instructed Deccan Chronicle, “Very clearly, with out demonetisation, the RBI perhaps phasing out Rs 2000 foreign money notes. We aren’t getting any new
provide of Rs 2000 notes.”
A former banker mentioned, “There could also be some folks hoarding Rs 2000 foreign money notes however they might be few. Banks should not reissuing Rs 2000 notes and perhaps banks have been instructed by RBI to not reissue Rs 2000 notes. Additionally it is simple to calibrate ATMs with decrease foreign money notes. Rs 500 notes are less difficult to make use of and convertible. The world over, the 2000 denomination foreign money is uncommon.”
Apparently, the variety of banknotes in circulation has grown by 7 per cent to 116 billion items as of March 2020.
As for counterfeit notes, the central financial institution mentioned a complete of two,96,695 items had been detected in the course of the earlier monetary yr. The variety of counterfeit notes of Rs 2,000 detected was 17,020 items over the last fiscal, down from 21,847 in 2018-19.
The RBI mentioned the demand for foreign money began to extend within the wake of heightened uncertainty brought on by COVID-19 pandemic. The Reserve Financial institution took a sequence of measures with a view to meet the improved demand. As well as, observe printing presses, paper mills and banks had been additionally directed to place in place a enterprise continuity plan/contingency plan to keep away from any disruption in steady provide of foreign money.”