Fake notes may have contributed withdrawal of Rs 2,000 notes

CHENNAI: Factors like the increase in counterfeiting of Rs 2,000 denomination banknotes and people's preference for lower denomination notes may also be reasons for the Reserve Bank of India (RBI) announcing the gradual withdrawal of that note.

According to the RBI's annual report for FY22, during FY20, 17,020 Rs 2,000 denomination counterfeit notes were detected, and the number went down to 8,798 pieces in FY21 and climbed up to 13,604 pieces in FY22.

It should be noted that the RBI stopped printing the Rs. 2,000 notes during FY19.

According to a report in 2020, the central bank spent Rs 3.54 to print one Rs 2,000 note.

On Friday, the RBI had announced withdrawal of Rs 2,000 denomination banknote in a gradual manner.

As per a survey done by the RBI, among banknotes, Rs 100 was the most preferred, while Rs 2,000 was the least preferred denomination.

Be that as it may, as per the RBI's annual report, it spent Rs 4,984.80 crore in FY22 on the printing of currency notes, up from Rs 4,012.09 crore spent during FY21.

The RBI issues banknotes in denominations of Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500, and Rs 2,000. Coins in circulation comprise 50 paise and Re 1, Rs 2, Rs 5, Rs 10, and Rs 20 denominations.

The Rs. 1 note is issued by the Ministry of Finance, Government of India. (IANS)

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