`2,000 notes not printed in ’19-’20

No `2,000 note printed in 2019-20; `2,000 notes in circulation are on decline

Mumbai: Currency notes of

`2,000 denomination were not printed in 2019-20 and the circulation of these notes have declined over the years, according to the RBI’s annual report. The number of `2,000 currency notes in circulation has come down from 33,632 lakh pieces at end-March

2018 to 32,910 lakh pieces at end-March 2019 and further to 27,398 lakh pieces at end-March 2020. The number of pieces constituted

2.4 per cent of the total volume of notes at end-March

2020.

Without announcing a formal demonetisation, the Reserve Bank of India (RBI) appears to be phasing out `2,000 currency notes from circulation if one goes by data published in the RBI Annual Report 2019-20, which was released by the central bank on Tuesday.

In its report, the RBI said the `2,000 denominated currency note, which was launched after the demonetisation in November 2016, has not been printed in financial year 2019-2020. The number of `2,000 currency notes in circulation is also gradually coming down since 2018.

At the end of March

2018, there were 33,632 lakh pieces of `2,000 currency notes in circulation.

This number came to

32,910 lakh pieces at endMarch 2019 and further down to 27,398 lakh pieces at end-March 2020.

The `2,000 denominated notes constituted 2.4 per cent of the total volume of notes at the end of March

2020, down from three per cent at the end of March

2019 and 3.3 per cent at the end of March 2018.

In value terms also, the share has came down to 22.6 per cent at the end of March 2020, from 31.2 per at the end of March 2019 and 37.3 per cent at the end of March 2018. The share of `2,000 notes was

50 per cent in 2017, as the major focus was on remonetising the economy.

On the other hand, the circulation of currency notes of denomination of

`500 and `200 has gone up substantially, both in terms of volume and value over the three years beginning 2018.

Bankers believe that the RBI is gradually withdrawing `2,000 notes from the circulation by not printing notes afresh.

Unlike demonetisation, the method would gradually withdraw the notes while allowing them to remain a lender tender.

A senior banker told Deccan Chronicle, “Very clearly without demonetisation, the RBI maybe phasing out `2000 currency notes. We are not getting any new supply of

`2,000 notes.”

A former banker said, “There may be some people who are hoarding

`2,000 currency notes but the number may not be large. Banks are not reissuing `2,000 notes; maybe banks have been told by the RBI not to reissue

`2,000 notes. It is also easy to calibrate the ATMs with lower currency notes such as `500.”

VERY CLEARLY without demonetisation, the RBI maybe phasing out `2,000 currency notes. We are not getting any new supply of `2,000 notes. SENIOR BANKER