The union finance ministry has issued clarifications, saying it has no plans to reintroduce currency notes of denomination of more than Rs 500. This statement was made in response to a question raised in the Rajya Sabha regarding the reintroduction of such notes.
Responding to the question asked by MP Ghanshyam Tiwari about whether the government plans to print currency notes of denominations greater than Rs 500, Minister of State for Finance Pankaj Chaudhary said, “No, Sir.” This concise response dismissed any such plans.
He also sought details about the Rs 2000 banknotes — when they were introduced, their circulation at the time of withdrawal, and the volume of notes that remain in circulation.
Also read: Is your 500 rupee note fake? Here’s why doubts are rising over banknotes authenticity
In his reply, Chaudhary explained that the Rs 2000 denomination note was introduced by the Reserve Bank of India (RBI) in November 2016 under Section 24(1) of the Reserve Bank of India Act, 1934. “The volume of Rs 2000 banknotes in circulation as on March 31, 2017, was 32,850 lakh pieces, which increased slightly to 33,632 lakh pieces by March 31, 2018,” he said.
As for the withdrawal of these notes announced on May 19, 2023, the minister stated that 17,793 lakh pieces of Rs 2000 notes were in circulation at the time. “Out of these, 17,447 lakh pieces have been returned to the RBI as of November 15, 2024, leaving only 346 lakh pieces still in circulation,” he added.
The government has also made provisions for the exchange and deposit of Rs 2000 banknotes. The facility remains available at 19 Issue Offices of the RBI, and citizens can also use India Post services to send the notes to these offices for credit to bank accounts.
This clarification comes amidst speculation about whether the government might introduce higher denomination notes, a prospect the Finance Ministry has categorically denied.
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