2000 Rupee Notes: On 19 May 2023, the Reserve Bank of India suddenly announced the withdrawal of 2000 rupee notes from circulation. The 2000 rupee notes were withdrawn even before they were in circulation for seven years. But the government has been questioned in the Rajya Sabha about the cost of printing and destroying 2000 rupee notes. Finance Minister Nirmala Sitharaman said that between July 2016 to June 2017 and July 2017 to June 2018, the printing of notes of all denominations cost Rs 12877 crore. But she said that the cost incurred in the process of withdrawing 2000 rupee notes has not been calculated separately.
How much did it cost to print and destroy Rs 2,000 notes?
Rajya Sabha MP Sandeep Kumar Pathak asked the Finance Minister a question during the Question Hour about the printing and destruction of 2000 rupee notes. He asked the Finance Minister, how many 2000 rupee notes have been printed and how much has been the cost of printing and destroying these notes?
In a written reply to both these questions, Finance Minister Sitharaman said, according to the Reserve Bank of India, 3702 million (370.2 crore) notes of 2000 rupees denomination were supplied, whose value is Rs 7.40 lakh crore. The Finance Minister quoted the RBI and said that between July 2016 to June 2017 and July 2017 to June 2018, the printing of notes of all denominations cost Rs 7965 crore and Rs 4912 crore. That is, Rs 12877 crore was spent on printing notes for four months before demonetization and for 20 months after that. Let us tell you that this is the same period when on 8 November 2016, after the announcement of withdrawal of old 500 and 1000 rupee notes, new series of 500 rupee notes, 2000 rupee notes, 200 rupee notes, 100 rupee notes, 200 rupee notes, 200 rupee notes and new series of 10 rupee notes were issued.
This is the cost of printing 1000 pieces!
In his reply, the Finance Minister has also disclosed the cost of printing 2000 rupee notes. He said that the cost of printing 1000 pieces of 2000 rupee denomination was Rs 3540. That is, the cost of printing one 2000 rupee note was Rs 3.54. If we add this, then Rs 1310.508 million (Rs 1310.50 crore) was spent on printing 3702 million notes. The Finance Minister said that when the withdrawal of 2000 rupee notes was announced on 19 May 2023, then banknotes worth Rs 3.56 lakh crore were present in circulation, out of which notes worth Rs 3.48 lakh crore have returned to the banking system by 30 June 2024.
Who recommended bringing and withdrawing the note?
The Finance Minister was also asked that, on the basis of which committee’s recommendations the 2000 rupee bank note was brought into circulation and on the basis of which committee’s recommendations it was withdrawn from circulation? The Finance Minister was also asked what is the impact of the introduction and withdrawal of the 2000 rupee note on the Indian economy? In response to this question, the Finance Minister said, after the abolition of the legal tender status of 500 and 1,000 rupee notes in November 2026, which was 86.4 percent of the value of the total notes in circulation, the biggest priority was to meet the currency needs in the economy. In view of this, on 10 November 2016, under Section 24 (1) of the RBI Act 1934, the Reserve Bank of India brought 2000 rupee notes into circulation. The Finance Minister said that the objective of introducing Rs 2000 notes was accomplished when notes of other denominations became available in sufficient numbers.
The notes were no longer usable!
Finance Minister Sitharaman said that the process of withdrawing 2000 rupee notes is going on as a normal currency management operation. Notes of other denominations are available in sufficient numbers to meet the needs of the citizens. The Finance Minister said that the validity of 2000 rupee notes issued before March 2017 was expiring. According to RBI, people were not preferring 2000 bank notes for transactions. The Finance Minister told the House in a written reply that keeping these things in mind and under the clean note policy of RBI, it was decided to withdraw 2000 rupee notes from circulation.
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