Reserve Bank of India Stops Printing Rs. 2000 Notes

January 05

The Reserve Bank of India (RBI) has stopped printing Rs. 2,000 notes launched during the demonetization in November 2016.

The move, as per a report is being aimed at slowly reducing the note’s circulation.

The report also states that the decision also comes amid suspicion that the Rs. 2,000 note is being used for money laundering, hoarding and tax evasion.

The cut in circulation doesn’t translate into the note being deemed invalid. To compensate, the printing of Rs. 500 notes has been increased.

The Rs. 2,000 note, along with the new Rs. 500 note, was introduced in November 2016 to replace the demonetized Rs. 1,000 and Rs. 500 notes and to deal with the acute currency shortage.

Opposition parties had criticized the introduction of these notes as a higher denomination note would only make it easier for people to hoard money.