NEW DELHI: The government on Tuesday said that the share of Rs 2,000 notes seized during searches conducted by the income tax department has declined from close to 68% in 2017-18 to around 43% so far this year. While the highest-denomination currency note remains the dominant mode of stashing illicit wealth, the declining trend may also be linked to the government.

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Reserve Bank of India (RBI) going slow on the flow of new Rs 2,000 notes in the system. Besides, there are fears that the government may phase out these notes, prompting those with unaccounted cash to replace them with other notes. The declining trend may also be linked to the government and the RBI going slow on the flow of new Rs 2,000 notes in the system There are also feared that Besides, there are fears that the government may phase out these notes, prompting those with unaccounted cash to replace them with other notes. No. of 2,000-rupee notes in circulation shrinks 7.2 crore in FY19 The Rs 2,000 note, which was much-reviled during demonetisation due to difficulties in exchanging it, is seeing a sharp drop in print orders by the RBI.

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After all demonetised notes were replaced in March 2017, the Rs 2,000 note accounted for half the total value of the currency in circulation. It now accounts for 31% of the value of the total currency in circulation. “An analysis of the search cases involving cash seizures of more than Rs 5 crore in the last three financial years has been carried out. This analysis reveals that the percentage of unaccounted cash seized in denomination of Rs 2000, out of the total cash seized is 67.9%, 65.9% and 43.2% in financial years 2017-18, 2018-19 and the current financial year till date, respectively. Thus, a declining trend is visible in the seizure of unaccounted cash in denomination of Rs 2000 notes,” finance minister Nirmala Sitharaman said in response to a Parliament question as she listed out a host of measures initiated by the government over the last few years.

While the Rs 2,000 notes were launched post-demonetisation to quickly replace cash in the system as the old Rs 500 and Rs 1,000 ceased to be legal tender, the fresh stock of notes entering the system has slowed down.

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No. of 2,000-rupee notes in circulation shrinks 7.2 crore in .

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The Rs 2,000 note, which was much-reviled during demonetisation due to difficulties in exchanging it, is seeing a sharp drop in print orders by the RBI. The number of outstanding notes has shrunk by 7.2 crore to 329 crore in FY19. According to bankers, the RBI is shifting focus away from the Rs 2,000 note as the denomination was printed in large numbers to cope with the replacement of demonetised notes. Recommended By Colombia The Rs 2,000 note, which was much-reviled during demonetisation due to difficulties in exchanging it, is seeing a sharp drop in print orders by the RBI The number of outstanding notes has shrunk by 7.2 crore to 329 crore in FY1 All other banknotes saw an increase in the number in circulation Number of 2,000-rupee notes

No proposal to withdraw Rs 2,000 notes: Government The government has said that there is no proposal to withdraw Rs 2,000 denomination note. RBI introduced the Rs 2,000 notes following demonetisation of high value Rs 500 and Rs 1,000 notes in November 2016. After all demonetised notes were replaced in March 2017, the Rs 2,000 note accounted for half the total value of the currency in circulation. A year later its share declined to 37%. It now accounts for 31% of the value of total currency in circulation. Currency surge due to small note need; circulation of Rs 2,000 notes inadequate: Study According to a report by SBI, the pace of circulating Rs 200 denomination notes, as well as other smaller units, increased manifold in FY18.

The SBI report comes close on the heels of a similar study by HSBC, which said that the cash surge is a reflection of increasing ‘informality’ — a euphemism for unaccounted transactions or black money. All other banknotes saw an increase in the number in circulation. The biggest increase in share was by the Rs 500 note which now accounts for 51% of the Rs 21.1 lakh crore of banknotes in circulation. There are 2,151 crore Rs 500 notes in circulation which is more than the 2,007 crore notes of Rs 100. 11/20/2019 RS 2000 Note: No. of 2,000-rupee notes in circulation shrinks 7.2 crore in FY19 |

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Currency in circulation rises 22% in May over pre-demonetisation level Currency notes in circulation stood at Rs 21.71 lakh crore at May-end 2019, showing an increase of more than 22% over the pre-demonetisation level. As per a reply given by finance minister Sitharaman in the RS, the notes in circulation as on November 4, 2016 were Rs 17,74,187 crore, which have now increased to Rs 21,71,385 crore as on May 31, 2019. Notes of Rs 10 denomination are the largest in number with 3,128 crore in circulation.

According to the RBI, indent (orders based on demand from banks) of banknotes for 2018-19 was lower by 5.6% from their level a year ago. However, the supply of banknotes during 2018-19 was higher than in the previous year. Top Comment Larger denomination currency notes helps free flow of black money … this should reduce furtherDeepak Dahiya See All Comments Add Comment In volume terms, Rs 10 and Rs 100 banknotes constituted 47.2% of total banknotes in circulation at the end of March 2019 as against 51.6% at the end of March 2018. Coins of Re 1, Rs 2 and Rs 5 together constituted 83.6% of the total volume of coins in circulation, while in value terms, these denominations accounted for 78.3%. The central bank spent Rs 4,811 crore in printing currency notes in 2018-19 compared to Rs 4,912 crore in 2017-18.

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