Why are the ₹2000 notes disappearing?

When was the last time you went to an ATM and it gave you a ₹2000 note?

 

Probably been a while, huh?

 

Back in 2018, all of us wanted to get our hands on those 2000 notes. Now it seems that all we are left with are ₹500 and ₹100 notes that we circulate around.

 

If you are one of those people that haven’t touched a ₹2000 note for a while, you are not alone.

 

But why can’t these notes be seen around enough?

 

Let us explain…

 

As per the annual report by RBI, ₹214 crores worth of ₹2000 notes are now in circulation as compared to the ₹4554 crores worth of ₹500 notes by March of 2022. But these ₹2000 notes are slowly disappearing from our ATMs and other places we shop or transact at.

 

Back in 2019, RBI decided to completely halt the operations of printing the ₹2000 bills. This move was made to promote a mix of multiple denominations in the Indian country. 

 

In value terms, the share of ₹500 and ₹2,000 bank notes together accounted for 85.7 percent of the total value of banknotes in circulation as on March 31, 2021.

 

There has been a poor ‘arrival’ of ₹2,000 notes at bank counters. Not many customers are bringing ₹2000 notes for transactions. With the non-availability of new notes in currency chests in adequate numbers, ₹500 notes have almost substituted them now. Not every middle-class man would exactly prefer to carry a ₹2000 bill all the time, right?

 

Then there is the problem of ‘black money’. Most ED raids right now seem to uncover large numbers of these notes by some parties, which contributes a lot to their scarcity.

 

It seems that right now, the Indian population is also happy and satisfied with the use of ₹500 notes more than ₹2000 notes. Then there is the frequent use of ₹200 notes as well, which makes matters simpler for a common person in India.

 

What do you think about this story?

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