The demonetization in 2016 was historic. The government introduced new notes of 500 and 2000 rupees. However, earlier 500 and 1000 rupees notes were in circulation. The government closed the circulation of those notes citing the concern about black money. However, people raised questions about 2000 rupees notes instead of 1000 rupees.
But now, there are discussions that the government might discontinue two thousand rupee notes as well. The apprehensions regarding the discontinuation gained strength after the government told in the parliament that they have not printed a single 2000 rupee note in last two years.
In a written reply, the Minister of State for Finance Anurag Thakur said that 336.2 crore notes of 2000 were in circulation till 30 March 2018. However, their number decreased to 249.9 crore by 26 February 2021. The government decides the printing of new currency notes on the advice of the Reserve Bank of India. The RBI makes the decision to meet the demand of public transactions. And the RBI did not advice for the printing of 2000 rupee notes in 2019-20 and 2020-21.
In 2019, the RBI has stated that they printed 354 crore notes of 2000 rupees in FY 2016-17. After that, they printed only 11.15 crore notes in 2017-18. Then, in 2018-19, they printed 4.669 crore notes. However, not a single note has been printed since April 2019.
Intention to stop black money
Meanwhile, economists never approved government’s decision to discontinue 1000 rupee notes and start 2000 rupee notes. They said if the government took the step to stop black money, then why to print currency of bigger denomination. But now, it is being said that the government might ban the 2000 rupee note, to ban black money.
On 8 November 2016, PM Modi made the historic announcement of demonetization. The government took 500 and 1000 rupee notes out of circulation. After this, the government issued 500 and 2000 rupee notes.