The Reserve Bank of India has issued a statement mentioning that the currency notes of Rs. 2000 have not been printed since 2019. Hence, in FY20-21, the RBI stopped its supply. The reason for this is the high denomination rate of the Rs.2000 notes. The move is taken as an attempt to curb the accumulation of black money and large amounts of money. In the Annual Report of 2021, the RBI has also mentioned that the other high denomination notes present in the country are Rs.500 and Rs. 2000 that makes up to 87.5% of the total value of currency notes present in the country.
The reports also mention that India’s central bank is keeping the production and distribution of the highest denomination note (Rs. 2000) on the lower side for decreasing the corruption and scam rates in the country. The annual report of RBI 2020 stated that as of March 2018 the distribution of Rs 2000 notes amounted to an estimated 33,632 lakh. This number dropped to 32,910 lakh by the end of March 2019. By the end of 2020, this number had risen to 27,398 million pieces.
When the demonetization process took place in India on 8 November 2016, the Central bank banned the notes of old Rs. 500 and Rs. 1000 notes. It was done to break the chain accumulation of the highest denomination notes present in the country. These measures ensured that there is no black money present in the country, and also to curb corruption. Hence, Rs. 2000 notes were added as an aftermath of PM Modi‘s demonetization policy.
The Reserve bank of India’s highest ever denomination note printed was of Rs. 10,000 in 1938. But it was later demonetized in 1946 due to the same reason. Again, in 1954, it was introduced but demonetized in 1978. During 2020-21, there was a 31.3 percent increase in counterfeit notes found in the new Rs. 500 notes system compared to last year, the RBI said. However, there has been a decline in counterfeit notes obtained from other denominations. As of now, the Reserve Bank of India issues notes of Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 200, Rs. 500 and Rs. 2,000. Distributed coins include 50 paises with Rs. 1, Rs. 2, Rs. 5, Rs. 10, and Rs. 20 denominations. A total of 39,453 counterfeit notes of Rs. 500 for the Mahatma Gandhi (New) Series edition were obtained during the year and 1.11 counterfeit notes were obtained for Rs 100 during the year.