Will the Rs 2,000 note be banned or phased out?

Mumbai, Jan 5: The government has said that there was "no decision" on printing more of Rs 2,000 notes as there are "more than adequate" in the system. This comes amid reports that the currency notes are being phased out.

Economic Affairs Secretary Subhash Chandra Garg said that printing of notes is planned per projected requirement and now, over 35 per cent of the notes in circulation are those of Rs 2,000.

Taking to Twitter, he said, "We have more than adequate notes of Rs 2000 in the system with over 35 per cent of notes by value in circulation being of Rs 2000."

On Thursday, a report had said the government had stopped printing 2,000 rupee notes and planned to phase it out.

A top finance ministry official said on Thursday that the printing of Rs 2000 banknote, introduced post-demonetisation in November 2016, has been reduced to the "minimum" by the Reserve Bank.

Soon after the sudden decision to ban old Rs 500 and1000 currency notes by the government, the Reserve Bank had come out with the Rs 2000 currency note along with a new look Rs 500 note as part of its massive remonetisation exercise.

The senior official said the RBI and the government from time to time decides on the quantum of currency to be printed on the basis of money in circulation. When the Rs 2000 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 printing of 2000 rupee notes has been substantially reduced. It has been decided to limit the printing of 2000 currency notes to minimum. This is nothing new," the official said.