Undeclared Demonitisation of ₹.2000 at ATMs

Undeclared Demonitisation of ₹.2000 at ATMs

It seems that all the Banks in India are preparing to phase out the high denomination currency notes of ₹.2000. As a part of it, ATMs are dispensing more ₹.500 currency notes.

Undeclared Demonitisation of ₹.2000 at ATMs

One can assume this step as an undeclared Demonitisation of ₹.2000 currency in India. This theory has been assumed based on the reply given by the Reserve Bank of India (RBI) for a query related to ₹.2000 notes.

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In a Right To Information Act (RTI), RBI has confirmed that the ₹.2000 denomination printing has been stopped. In brief, the RBI has answered that 35,42,991 million notes of ₹.2000 denomination were printed during the financial year 2016-17. From then there is a substantial response in the printing of ₹.2000 denomination. In 2017-18 only 1,11,507 million notes were printed and during 2018-19 it further got reduced to 46,690 million notes.

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It is known that in November 2016, the Indian government has declared demonetizing of ₹.1000 and ₹.500 denomination notes.

Asked about low dispensing in ATMs and printing of ₹.2000 notes, India Union Finance Minister, Nirmala Sitharaman replied that there is no instruction as such to banks.

But citing the overall situation it seems that the Union government is taking again a measure to curb black money in the market by declining ₹.2000 notes. Though the MoS (Finance) minister has stated in the Indian Parliament that there is no proposal o withdraw ₹.2000 denomination notes, it is far away from the reality.

The only common reply given in Banks related to declining of ₹.2000 denomination notes loading in ATMs is that there is a problem in getting change for such high denomination.

However, there will be a big impact if the government decides to demonetize ₹.2000 denominations currency notes at this point in time. Many experts expressed their view that ₹.1000 and ₹.500 demonetization has not fetched any positive results as intimated or expected by the government.

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