Rs 2000 notes were introduced to meet currency requirement post demonetisation: MoS Finance in Rajya Sabha

New Delhi [India]: Rs 2000 denomination banknotes were introduced to expeditiously meet the currency requirement of the economy after demonetisation and are close to the end of their useful life, the Minister of State for Finance, Pankaj Chaudhary said in a written reply to the Rajya Sabha on Tuesday.

He further cited a survey conducted by the Reserve Bank of India and said that Rs 2000 denomination notes are no longer preferred for transactions. “The Rs 2000 denomination banknotes were introduced on November 10, 2016, under Section 24(1) of the Reserve Bank of India (RBI) Act, 1934, to expeditiously meet the currency requirement of the economy post-withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time,” MoS Pankaj Chaudhary said in his written reply.

The Minister stated that vide RBI’s Press Release dated May 19, 2023, it has conveyed that 89 per cent of Rs 2000 denomination notes were issued prior to March 2017 and are close to the end of their useful life which spans from 4-5 years.

According to a pan-India survey of the public conducted by RBI, Rs 2000 denomination banknotes are no longer preferred for transactions, the MoS said.

Chaudhary further stated in his written reply that the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public. In view of above and in pursuance of RBI’s “Clean Note Policy”, it was decided by RBI to withdraw the Rs 2000 denomination banknotes from circulation.