RBI Holding Back Rs. 2000 Notes? Here’s What SBI Report Explains

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Discountwalas
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RBI Holding Back Rs. 2000 Notes? Here’s What SBI Report Explains



After the much debated and controversial decision of demonetisation of INR 500 and INR 1000 denominations notes in November, 2016 it is being rumoured that the Government may be planning a deliberate attempt to create a shortage of INR 2000 denomination notes in the Indian economy. The speculation has been fueled by the SBI research report which categorically indicates that the government may have plans to either hold back Rs. 2000 notes or stop the printing of the high end denomination altogether.

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It is reported that the value of small denomination currency till March 2017 was INR 350 100 Cr. According to a report presented by Finance Ministry, the Reserve Bank of India (RBI) had printed 1695.7 Cr units of INR 500 and 364.4 Cr units of INR 2000 notes as on 8th December valuating to INR 1 578 700 Cr. It is reported that INR 1 332 400 Cr worth of high denomination notes were in circulation as on 8th December thus implying that nearly INR 246 399 Cr may not have been supplied in the market by RBI. These figures has been explicitly estimated by a report authored by Soumya Ghosh, group Chief Economic Adviser of SBI. The same report also insinuates that INR 246 300 may be a very conservative figure since the central bank also printed small denominations of INR 50 and INR 200 notes. All signs indicates that RBI might be planning a conscious effort in scrapping Rs. 2000 notes or pulling out the supply slowly in order to curb the high value cash transactions in the country. This can safely be assumed that the percentage of small denomination notes may have reached nearly 35% of the total value of cash circulation in the market. This is in high contrast to the 86-87% of INR 500 and INR 1000 denomination notes circulating in the market previous to 8th November, 2017.



Though the move had resulted in immediate cash crunch in the economy but many economists believe that such deliberate steps to pull high denomination notes from the economy will not only curb black money but will also enhance digital financial transactions in the economy resulting in fairer money deals across the country.



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116 COMMENTS

  19. This is very good decision of RBi to call back Rs.2000/= notes. All notes are kept by big parties only. There is no requirement so high value notes as per Indian economy
    .

  61. Circulation and Zero value of Rs 2000/- should have same fate as of Rs 500/- and Rs 1000/-. It requires less space and volume to keep thus is promoting corruption faster than past. YES interest of Politicians and Industrialists requires to be checked as they are the backbone of Country Mera Bharat. It is required as huge amount of currency tricked out from their hidden stores. Then we can once again repeat MERA BHARAT MAHAN, corruption free, believes in transparency and accountability.

  64. It is very much needed to withdraw and domonitise the 2000 rupees currency. Cash transactions to be curtailed other than for a small transactions.

    • Why after 2019 elections. When we get 2000 denomination from any sources, ATM, its scary whether note is torn, overwritten, color bleeding etc., We got to treat the note alike any jewellery article. It’s nightmare even for middle class salaried person. Pls, pls remove from circulation and abolish asap for our economy. The act would cleanse BJP image too.

  66. It’s a Good Decession to gradually withdraw High Denomination Currency, but RBI is charging commission for Every online transaction – THIS must be withdrawn

    • Better to wait upto 2019 election, otherwise it will create difficulties to leaders to complete election. Thereafter decision can be taken slowly.

  70. यह RBI का उत्तम विचार है इससे कालेधन पर रोक लगेगी

  71. Sir,

    आप ने जो निर्णय लिया वह सहार्णिय हैं।
    पर निर्णय लेने से पहले यह व्यवस्था जरूर करना चाहिए थी, ATM या बैंक से जमा राशि निकलने मे कोई दिक्कत न हो । जब भी रूपये कि जरूरत पड़ी ATM का सटल डाउन बैंको मे भिड़।

  90. A very very good decision to crub 2000/-notes. But most of the notes are with the political parties, MP CORPORATERS. BUILDERS ETC

  92. This is another excuse and plan to prepare ground to carry further government’s evil plan on demonetization. People are fools to believe this garbage.

  93. Yes good decision if it is withdrawn without giving any room to do any malpractice by unaccount holders as happened in the past in 1000 and 500 demonitisation

  94. Stoppage or slow down of Rs 2000 notes should become a major Budget decision. I personally support withdraw of Rs 2000 notes.

  97. I support to withdraw high value currency rs 2000 notes.definetly it controls some curreption.may be introduced rs 1000 notes again.this may be taken before 2019 general election.

  99. see our people only by words not in action because our political people all moment only curreption not for people even single pisea they did not give for people so these all white dressed Don’s that solve

  100. It should not be banned totally, but circulation limit must be lowered to barest minimum. Our aim should be total digitalisation and if we achieve it there will be no need of any denomination of notes. It’s the need of hour as any denomination can lead to corruption by the people of such mentality.

  104. Bold step. Surely it will bring down black money, reduce corruption and enhance digital transactions.
    Every Indian should support.

  107. Many Black Money holders in India owns godowns with full of Black Money in Rs 2000 , 500 , 100 and even 50 Rupee notes which Govt is not able to locate and seize the money !!! Rs 2000 note must be withdrawn in phased manner in next 3-4 months now .

  109. Currency of Rs.2000/- should be withdrawn in a phased manner, but before that it must be ensured that common public should not face any further problem for scarcity of other lower denomiinations currency notes. So adequate numbers of lower denominatton currency notes must hatve to be circulated before taking that step.

  110. hello RBI and sbi
    it will a great step if 2000 rupee is bought less i the market it will reduce black money transaction and small money denomination will flow in the market and shall bring down inflation also to carry bigger denomination currency like 2000/- rupee is easy for doing black money transaction pls instructs the banks not to give bigger denomination currency for re circulation for it from the bank counter and should go back to RBI
    pls do it fast in the interest of the nation

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