The Rs 2,000 notes, that were introduced soon after demonetisation, are being attempted to be reduced to the lowest level in circulation. A PTI report citing a Finance Ministry official suggests that the RBI has significantly scaled down the printing of Rs 2,000 notes. The official further said that the scale down was previously decided at the launch of the largest denomination in the country.
In the middle of 2018, there were several media reports of a cash crunch faced across Indian cities due to a shortage in supply of Rs 2,000 notes and the inability of the ATMs to dispense new notes of smaller denominations as they varied in size.
Addressing the situation the ministry had said that there was a sufficient number of these notes being circulated among residents and the shortage was caused due to hoarding of Rs 2,000 notes by citizens. It was also said that there was an unusual rise in demand for cash due to festivities.
Data released by RBI data showed that there were 3,285 million pieces of Rs 2000 notes being circulated at end of March 2017 which was increased marginally to 3,363 million pieces in exactly a year. Rs 2000 notes accounted for 37.3 percent of the total currency worth Rs 18,037 billion in circulation at the end of March 2018, which is less than the 50.2 percent at the end of March 2017.