Indian two thousand rupee banknotes. (Photographer: Dhiraj Singh/Bloomberg)

RBI Reduces Printing Of Rs 2,000 Notes

The printing of Rs 2,000 banknote, introduced after demonetisation in November 2016, has been reduced to the minimum by the Reserve Bank of India, a top finance ministry official said on Thursday.

Soon after the sudden decision to ban old Rs 500/1,000 currency notes by the government, the central bank had come out with the Rs 2,000 currency note along with a new look Rs 500 note as part of its massive remonetisation exercise.

The senior official said the central bank and the government from time to time decide on the quantum of currency to be printed on the basis of money in circulation.

When the Rs 2,000 note was launched, it was decided that the printing would be "scaled down" going forward, since the new high currency value note was meant for meeting the remonetisation need.

The official said that it has been decided to limit the printing of Rs 2,000 currency notes to a minimum. The official also said that this is nothing new.

According to the RBI data, there were 3,285 million pieces of Rs 2,000 notes in circulation at end-March 2017. A year after, on March 31, 2018, there was only a marginal increase in the number at 3,363 million pieces.

Of the total currency in circulation amounting to Rs 18,037 billion at end-March 2018, Rs 2,000 notes accounted for 37.3 percent, down from 50.2 percent at end-March 2017.

The old 500/1,000 bank notes that were scrapped in Nov. 2016 accounted for around 86 percent of the total currency in circulation at that time.