Rs. 2000 Notes Unlikely To Be Banned

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After rumours came in that there is a high possibility of the government discontinuing Rs. 2000 bank note, Shiv Pratap Shukla, Junior Finance Minister, cleared the air on the issue and said that government is not considering any such proposal.

Rs. 2000 Notes Unlikely To Be Banned

Rs. 2000 bank note was introduced by the RBI after the Narendra modi's demontisation move to curb money laundering activities and remove black money from the system that led to the scraping of Rs. 500 and Rs. 1000 bank notes.

It is to be noted that speculation of the highest value currency's (Rs. 2000) possible discontinuation became common in the wake of currency crunch faced in most parts of the country in the last few months. During that time banks had been asked to recalibrate the cash cassettes in the ATMs for accommodating new notes that further added to the woes of money circulation.

The minister further said that currently there is no cash crunch at ATMs and Rs. 500 notes are supplied in adequate in view of the cash crunch situation faced in most part of the country in the past few months.

The initial attempt to discontinue Rs. 500 currency note as part of demonetisation was aimed at checking black money in the system, but analysts as well as opposition politicians deemed the move as illogical as the currency in high denomination fast-tracked illicit activities and black money into the system.

On the issue of bringing petroleum products within the new indirect regime, the minister said that efforts are being put to reach a consensus among the states over the matter. On the issue being raised that GST fuelled inflation in the last few quarters, minister declined it by saying that after the introduction of GST in fact some goods have become cheaper and it is on only 40 items that 28% GST is charges, rest all other goods and services are placed in the 5%, 12% and 18% GST slab.

Read more about: demonetisation black money
Story first published: Tuesday, May 15, 2018, 22:06 [IST]
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