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Know why 2000 notes ‘disappeared’ on 5th anniversary of demonetisation? Printing has also stopped

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The number of Rs 2,000 notes in the Indian economy has decreased by about a quarter compared to 2017-18. Let us tell you that after demonetisation, it had reached its peak of 33,630 lakhs, which has come down to 24,510 lakhs in March 2021. If we look at the prices, it was around Rs 6.72 lakh crore at that time, which has now come down to Rs 4.90 lakh crore.

The number of Rs 2,000 notes removed from circulation is 9,120 lakh, with a total value of Rs 1.82 lakh crore. This means that the number of Rs 2,000 notes has come down by 27 per cent.

Where did those 2,000 rupee notes go?

The latest annual report of RBI says nothing about these notes. Apparently, RBI has stopped printing new Rs 2,000 notes as these high denomination notes are not coming back to the banks. Even in ATMs, people are not getting Rs 2,000 notes as before. There is a strong possibility that these notes may have been deposited as black money due to the high price.

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Even at the time of demonetisation, black money was estimated to be around Rs 4-5 lakh crore, which experts believed would not return to the system.

RBI has increased the number of low denomination notes in the market. According to the RBI’s annual report, the value and quantity of banknotes in circulation increased by 16.8 per cent and 7.2 per cent, respectively, during 2019-20 as against a growth of 14.7 per cent and 6.6 per cent respectively during 2020-21.

The share of Rs 500 and Rs 2,000 banknotes accounted for 85.7 per cent of the total value of banknotes in circulation as on March 31, 2021, as against 83.4 per cent as on March 31, 2020. It is clear from this that Rs 500 notes are being taken instead of Rs 2,000 notes. In terms of volume, the Rs 500 denomination had the highest share of 31.1 per cent.

The share of Rs 500 denomination banknotes in the total volume of banknotes increased from 19.8 per cent as on March 31, 2019 to 25.4 per cent as on March 31, 2020 and 31.1 per cent as on March 31, 2021.

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