The decision to stop printing more Rs 2,000 notes was taken after Modi government became suspicious that the high-denomination currency note is being used for money laundering, tax evasion and hoarding, a report by ThePrint said.
Following the announcement of the demonetisation decision on November 8, 2016, the government introduced the Rs 2,000 note to counter the massive cash shortage across the country. A year after, on 31 March 2018, there was only a marginal increase in that number to 3,363 million pieces.
When the Rs 2,000 note was launched, it was decided that the printing would be "scaled down" going forward, since the new high currency value note was meant for meeting the remonetisation need. "It has been made a decision to limit the printing of 2,000 currency notes to minimum". This comes amid reports that the currency notes are being phased out.
Why Rs 2000 Currency Is Being Stopped? Of this, Rs 6.73 lakh crore (Rs 37%) was in Rs 2,000 notes, while Rs 7.73 lakh crore (43%) was in new Rs 500 notes, PTI reported citing RBI figures. The total value of such notes translates into Rs 15,787 billion.
He said last month: "I think we would have had significantly better outcomes, if we had just thought about simple things". If you are taking out Rs 500 and Rs 1,000 notes, why would you introduce Rs 2,000 notes?
The old 500/1,000 bank notes that were scrapped in November 2016 accounted for around 86 percent of the total currency in circulation at that time.
Soon after the ₹2,000 note-the highest denomination in circulation currently-was introduced in November 2016, TV channel ZEE informed viewers that the banknotes had "state of art nano Global Positioning System chips".