Will demonetisation come back to haunt us again? Find out here


Demonetisation, six years later: Six years ago on November 8, Prime Minister Narendra Modi had announced the discontinuation of the old Rs 1,000 and Rs 500 notes. It was called demonetisation. One of the main reasons behind the unprecedented decision was to curb black money and promote digital payments.

Over the past six years, digital payment transactions have multiplied and India’s digital payments market is expected to cross $10 trillion by 2026, according to the latest study by digital payments firm PhonePe and Boston Consulting Group (BCG).

RTI response reveals

Amid all these economic activities, an RTI response recently revealed that no new Rs 2,000 notes were printed during the years 2019-20, 2020-21 and 2021-22.

It is pertinent to inform that the RTI was an application filed by IANS. The response revealed that The Bharatiya Reserve Bank Note Mudran (P) Ltd printed 3,542.991 million notes of Rs 2000 in the fiscal year 2016-17, which reduced to 111.507 million notes in 2017-18 and 46.690 million of tickets in 2018-2018.

According to the RTI response received from the Bharatiya Reserve Bank Note Mudran (P) Ltd, ‘0’ number of Rs 2000 denomination notes were printed in 2019-20, 2020-21 and 2021-22.

After the government announced the demonetisation drive banning the old Rs 500 and Rs 1,000 notes on 8 November 2016, the Reserve Bank of India introduced the Rs 2,000 note.

According to a recent reply in Parliament (August 1), the amount of fake notes of Rs 2,000 denomination recovered in the country increased significantly between 2016 and 2020, from 2,272 to 2,44,834 pieces.

According to the data, the total number of fake Rs 2,000 notes seized in the country in 2016 was 2,272, an increase from 2015.

More than 90% of the counterfeit notes found in the banking system were of poor quality, without breaching any of the main security measures. Details of the security measures of these notes are available to the general public on the RBI website, according to Parliament’s reply.

He further stated that the RBI provides numerous instructions to banks on how to protect themselves from counterfeit cash notes. The central bank regularly conducts counterfeit banknote detection training programs for employees/officials of banks and other organizations that handle substantial amounts of currency.

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