This move comes in a bid to slowly reduce the circulation of the said notes.
According to The Print, RBI has stopped printing ₹2,000 notes.
However, it does not mean that the denomination will become invalid. Rather, the notes will be gradually phased out.
The decision was made at the suspicion that the high-denomination banknote is being used for hoarding, tax evasion, and money laundering.
According to The Print, many Indian cities reported massive cash shortage last April. The government suspects cash hoarding, ahead of state elections.
The high-value denomination was introduced in the market in 2016 in a bid to counter cash shortage following demonetisation.
Twitterati had their own divided opinions on the decision,
Wise decision to stop printing new 2k notes. Infact an another demonitisation of 2000 notes us welcome.
— Murli Narasimhan (@murlidn007) January 3, 2019
A 2000 rupee note was a stupid idea anyway. Just an excuse for the mess that they created.
— Sarita Falcão (@saritafalcao14) January 3, 2019
Modi Sarkar is waking up to its blunders after losing 5 state elections
1st, we saw the reversal of Gabbar Singh TaxNow, another U-turn by stopping the printing of the 2000 rupee noteIf you can’t run a govt, please leave it to those with experience https://t.co/ZXgPo1CHT4— Rajeev Gowda (@rajeevgowda) January 3, 2019
My brother (works in the film/advtg industry) told me three months ago that I should get rid of whatever 2000 rupee notes I have. Industry insiders were apparently suspecting another round of demonetisation in March/April. https://t.co/QC3A1JQO8s
— Paroma Mukherjee (@ParomaMukherjee) January 3, 2019
RIP 2000 rupee note we hardly used ye https://t.co/FhFHPH0cxm
— Traveling Salesman (@def__init__e) January 3, 2019
The 2000 Rupee joke and the effort that went in calibrating all the ATMs to handle this.https://t.co/5UFwCjQqg4
— Pradeep E (@epradeep98) January 3, 2019
RBI is yet to provide a comment.
