Lok Sabha Question No. 482 (UNSTARRED), answered on 2023-07-24
Subject: Withdrawal of Rs. 2000 Denomination Currency Notes from Circulation
Ministry: FINANCE
Asked by: Thirumaa Valavan Thol, Rakesh Singh, Supriya Sadanand Sule, Dinesh Chandra Yadav, Rajiv Ranjan (Lalan) Singh, Subhash Ramrao Bhamre, Manjulata Mandal, Kuldeep Rai Sharma, Sangeeta Kumari Singh Deo, Amol Ramsing Kolhe, Ravneet Singh, Sanjay Haribhau Jadhav, Omprakash Bhupalsinh alias Pawan Rajenimbalkar, T. R. Paarivendhar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 482 ANSWERED ON 24/07/2023

## WITHDRAWAL OF RS 2000 DENOMINATION FROM CIRCULATION

482. SHRI THIRUNAVUKKARASAR SU:

SHRI RAKESH SINGH:

SHRIMATI SUPRIYA SULE:

SHRI DINESH CHANDRA YADAV:

SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH:

DR. SUBHASH RAMRAO BHAMRE:

SHRIMATI MANJULATA MANDAL:

SHRI KULDEEP RAI SHARMA:

SHRIMATI SANGEETA KUMARI SINGH DEO:

DR. AMOL RAMSING KOLHE:

SHRI RAVNEET SINGH BITTU:

SHRI SANJAY JADHAV:

SHRI OMPRAKASH BHUPALSINH ALIAS

PAWAN RAJENIMBALKAR:

DR. T.R. PAARIVENDHAR:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government has recently withdrawn Rs. 2000 denomination currency notes from circulation,  if  so,  the  details  thereof  and  the  reasons  therefor  along  with  the  cost  for

printing a note and the total number of these notes in circulation and deposited in the banks and the percentage thereof, State/UT-wise especially in Punjab;

- (b) whether the introduction and consequent withdrawal of Rs. 2000 notes has cast doubts on the integrity and stability of the Indian currency, if so, the details thereof;
- (c) the criteria to change the Rs. 2000 notes;
- (d) whether the Government intends to extend the deadline for the exchange of Rs. 2000 note in banks beyond September, 2023 and if so, the details thereof;

(e) whether the Government is planning to demonetise other high denomination currency notes to eliminate black money and if so, the details thereof and the corrective measures taken/being taken to curb the black money and fake currency; (f) whether the Government has any proposal to augment the supply of other denomination notes or reintroduce circulation of Rs. 1,000 currency notes to fill the vacuum, if so, the details thereof and if not, the reasons therefor; and 10 resulting in huge inconvenience to the people, if so, the details thereof along with the time

(g) whether there is shortage of circulation of lower denomination notes viz. Rs. 50, 20 and by which the printing of these notes are likely to be started?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a):  The  ₹  2000  denomination  banknotes  were  introduced  on  November  10,  2016  under Section 24(1) of Reserve Bank of India (RBI) Act, 1934, to expeditiously meet the currency requirement  of  the  economy  post  withdrawal  of  legal  tender  status  of  all  ₹500  and  ₹1000 banknotes in circulation at that time. Vide RBI's Press Release dated 19.05.2023 (https://www.rbi.org.in/Scripts/BS\_PressReleaseDisplay.aspx?prid=55707), RBI has conveyed that about 89% of ₹2000 denomination notes were issued prior to March 2017 and are close to the end of their useful life which spans from 4-5 years. According to Pan-India survey of public conducted by RBI, ₹ 2000 denomination banknotes are no longer preferred for  transactions.  Further,  the  stock  of  banknotes  in  other  denominations  continues  to  be adequate to meet the currency requirement of the public. In view of above and in pursuance of  RBI's  'Clean  Note  Policy',  Reserve  Bank  of  India  decided  to  withdraw  the  ₹2000 denomination banknotes from circulation.

As  per  the  RBI Annual  Report  2016-17,  the  total  expenditure  incurred  on  security printing stood at ₹7965 crore for the year July 2016-June 2017.

According to RBI, as on 30.6.2023, the value of ₹2000 denomination banknotes in circulation is ₹0.84 lakh crore and the percentage of ₹2000 denomination in total banknotes in  circulation  is  2.51%.  State/UT  wise  information  on  deposit  of  ₹2000  denomination banknote is not being compiled by RBI.

(b): No Sir,

(c):  The  process  of  withdrawal  of  ₹2000  banknotes  is  as  per  RBI  Press  Release  dated 19.05.2023 {mentioned in para (a) above } and  separate  guidelines issued to all banks vide RBI circulars dated 19.05.2023 (https://www.rbi.org.in/Scripts/NotificationUser.aspx? Id=12505&Mode=0) and  22.05.2023  (https://www.rbi.org.in/Scripts/NotificationUser.aspx? Id=12506&Mode=0).

(d): At present, this matter is not under consideration. (e): No, Sir.

(f):  According  to  RBI,  the  withdrawal  was  a  currency  management  operation  planned  to avoid any inconvenience to public or any disruption in the economy. Further, withdrawal of ₹2000 banknotes has been factored in, in the current year's requirement and sufficient buffer stock  of  banknotes  in  other  denominations  is  being  maintained  across  the  country  to  meet exchange / withdrawal requirements.

(g): As per RBI, currency in denomination of ₹10 and ₹20 is available either in the form of banknotes  or  coins.  As  regards  currency  in  denomination  of  ₹50,  adequate  quantity  of banknotes are available for the use of the members of the public. Hence, there is no shortage of currency.

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