Rs.500 and Rs.1000 notes, on a stroke, become invalid a year ago, precisely on 8th November 2016, Is Rs.2000 note heading the same way? State Bank of India noticed the reduction of pink notes of Rs.2000 denomination, Chief economic adviser, Soumya Kanti Gosh, trying to find out reasons, realized reduction of Rs.2000 notes could be another hint on withdrawal of high denomination currency.
The Reserve Bank of India may either be holding back of Rs.2000 notes or could have stopped printing high denomination currency, she added. The value of small denomination currency in circulation was Rs.350,100 crores till 31st March 2017. the value of high denomination notes was equivalent to Rs.13,32,400 cores as on 8th December 2017, after nothing out the small denomination notes from the currency in circulation on that day.
RBI printed Rs.1,695.7 crore pieces of Rs.500 notes, Rs.365.4 crore pieces of Rs.2000 notes as on 8th December 2017. The total value of such notes amounts to Rs.1578,700 crore. as per the finance ministry replied to Lok Sabha recently. That is to say, the residual amount of high currency notes is Rs.15,78,700 crores minus Rs.13,32,400 of Rs.2463 billion.(ie Rs.246300 crore) may have been printed by RBI.
As a logical corollary, 2000 denomination currency led to challenges in the transaction, consciously RBI stopped printing denomination notes or printing smaller numbers after initially it was printed in ample amount to normalize the liquidity situation.