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No news on Rs 2,000 note withdrawal, Rs 200 to be issued soon: Gangwar

According to reports, the govt has stopped the further printing of recently printed Rs 2,000 notes

IANS  |  New Delhi 

Santosh Gangwar (Photo: Twitter)
Santosh Gangwar (Photo: Twitter)

With rumours of the Centre planning a withdrawal of the newly-introduced Rs 2,doing the rounds, Minister of State for Finance has said there was no news of its scrapping, adding the note will be in circulation soon.

"No news that Rs 2,000 will be scrapped," Gangwar told IANS in an interview.

"The reduction in printing of new Rs 2,000 notes is a separate issue. But that needs to be confirmed by the Reserve Bank of India (RBI). will give information on Rs 2,000 notes," he added.

According to media reports, the government has stopped the further printing of the recently printed Rs 2,000 notes.

On July 26, the issue was raised in Parliament when the opposition asked Finance Minister to confirm if the government was going to "demonetise Rs 2,000 notes" and if its printing had been stopped. The Union minister declined to reply.

Industry experts said the government was aiming to limit the circulation of high Rs 2,000 note, which would remain a legal tender, but not demonetise it. The circulation of smaller notes would be increased by introducing a new note.

Gangwar told IANS that note, printing of which had already begun, would be in circulation soon. The move to introduce note was to increase the circulation of smaller notes, he added.

A top government official, on condition of anonymity, told IANS that the note would be introduced in the markets in August.

"The paper for notes was ready in the Mysuru paper mill in June. It should be in circulation next month," the official said.

The Mysuru paper mill is the joint venture of Security Printing and Minting Corp of India Ltd (SMPCIL) and Bharatiya Reserve Bank Note Mudran, a wholly-owned subsidiary of

The new note was being printed in the printing press. India has four currency note printing presses — two presses at Mysuru (Karnataka) and Salboni (West Bengal) and two Security Printing and Minting Corp of India Ltd (SMPCIL) presses at Nashik (Maharashtra) and Dewas (Madhya Pradesh). SPMCIL is a public sector unit.

Lauding the introduction of note, a State Bank of India (SBI) report recently said that it would serve as the "missing middle".

"It seems that there has been a significant move towards relocating distribution of currency towards smaller denominations post demonetisation. However, while such a move is laudable and consistent with the long term vision of a less cash economy, we need to consider the following issues.

"Though the number of small notes has increased, the mismatch caused by the presence of Rs 2,000 straight after Rs 500 is causing difficulties in exchanging the high notes," the report noted.

Post-demonetisation, there were reports of people facing problems in using the Rs 2,as sufficient quantum of smaller notes of Rs 100 and Rs 500 were not available.

The government had brought in the Rs 2,immediately after November 8, 2016, demonetisation to expedite

The economy is now close to complete as the new currency in circulation reached 84 per cent of the extinguished one on July 7, according to the report.

The total amount of the spiked high-value notes of Rs 500 and Rs 1,000 in circulation on November 8 was 15.44 lakh crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, July 28 2017. 16:45 IST