No decision taken on Rs 2,000 note production: DEA Secretary

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Since the Prime Minister had argued that withdrawing the high value currencies would make it hard for people to hoard cash, critics had asked how it squared up with issuing notes carrying double the value.

The RBI, India's central bank and currency-issuing agency, did not respond to an email from ThePrint seeking comment.

A top government official said on Friday there was "no decision" regarding the printing of Rs 2,000 notes as there was "more than adequate notes" of the denomination in the system, amid reports that it was being phased out. The remaining currency in circulation is of lower denomination.

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We had earlier reported that RBI has stopped placing new orders of Rs 2000 currency note, and now, this is proved that Govt. understands Rs 2000 currency note is not a feasible option.

The critics included bankers, with Uday Kotak, the managing director of Kotak Mahindra Bank, questioning the government's move to bring in Rs 2,000 notes while phasing out Rs 1,000 notes.

Since Rs 2000 is the biggest denomination, it becomes easy to pass large amount of cash with less number of notes, and avoid suspicion.

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The report further said that as per the Ministry of Finance in the Lok Sabha, the RBI had printed 16,957 million pieces of Rs 500 notes and 3,654 million pieces of Rs 2,000 notes as on 8 December 2017.

Soon after the ₹2,000 note-the highest denomination in circulation currently-was introduced in November 2016, TV channel ZEE informed viewers that the banknotes had "state of art nano Global Positioning System chips". It has been made a decision to limit the printing of 2,000 currency notes to a minimum.

"Printing of notes is planned as per the projected requirement".

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The share of the Rs 500 notes in the total currency in circulation has increased too, from 22.5 per cent in March 2017 to 42.9 per cent in March 2018.