HYDERABAD: Eight months after their introduction, the circulation of 2000-rupee currency notes has reduced considerably in the state. The big notes are hardly found in ATMs which dispense notes of only smaller denomination.Officials in the finance department admitted that the circulation of 2000-rupee notes has come down. “There are two reasons. First, people are not depositing the value notes again with the banks. Thus, re-circulation of big notes is not happening. Second, the Reserve Bank of India (RBI) has stopped printing the big notes,” an official said.
Sources suspect that there is every possibility of cancellation of the 2000-rupee notes. “I heard that RBI is planning to introduce Rs 200 notes. But I do not know about cancellation of Rs 2,000 notes,” a top official said.It may be recalled that even as the opposition raised the matter of cancellation of Rs 2,000 notes in Parliament, the Union finance minister evaded a direct reply. The sources said the RBI is not sending any new notes of Rs 2,000 to the state.“When Rs 1,000 and Rs 500 notes were cancelled, the RBI replaced 86 per cent of the old notes with Rs 2,000 notes. Now, the 14 per cent notes are being printed in smaller denominations,” officials explained.
But the problem in the state is that around 90 per cent cancelled notes have been replaced with Rs 2,000 notes. “Once the circulation of big notes is reduced, there will be shortage of cash. There was shortage of currency two months back. Now, there is no shortage of currency and enough number of Rs 500 notes are being circulated across the state,” sources in the Finance department explained.
According to the sources, banks in the state have received Rs 25,000 crore in cash from the RBI in the last three months. Of that, Rs 2,000 notes comprise only 5 per cent and the remaining 95 per cent were Rs 500 and Rs 100 notes. Maybe, it seems, it is not safe to keep Rs 2,000 notes in huge number.
Reasons for low circulation
People are not depositing value notes again with banks. Thus, re-circulation is not happening
RBI has stopped printing the big notes
When L1,000 and L500 notes were cancelled, the RBI replaced 86 pc of the old notes with L2,000 notes. Now, the 14 per cent notes are being printed in smaller denominations
officials