RBI stops printing Rs. 2000 notes

RBI stops printing Rs. 2000 notes

Suspecting hoarding, tax evasion and money laundering, the Reserve Bank of India (RBI) has reportedly stopped printing Rs. 2000 notes, a media report said. It is believed that this is a move by the RBI to gradually phase out the Rs. 2000 note from circulation.

Though the government has categorically rejected any rumours that it has stopped printing Rs. 2000 notes, the report by SBI in December 2017 had stated that the RBI may either be stopping the printing or hold them back from circulation. Sources in the RBI believe that the Rs. 2000 note has brought denomination challenges into the financial system and hence, has taken a decision to stop printing them.

When Prime Minister Narendra Modi had announced the sudden demonetisation drive, there were several leaders and economists who demanded the ban of Rs. 2000 note and how it could increase money laundering. Many also asked the Government what was the use of introducing Rs. 2000 note when it was banning Rs. 500 and Rs. 1000 notes. However, the government did not pay heed to such opinions and over forward with its decision.

Additionally, the recent state elections also witnessed lot of cash being hoarded by political parties and their leaders. Most of the cases in which huge sums of cash was seized had stacks of Rs. 2000 notes. With assembly elections due in some states and Lok Sabha elections nearing, this move could prevent hoarding of cash by political parties.