GoI stops printing Rs.2000 note, suspects it is being used for tax evasion, money laundering: Report

Suspecting that the Rs.2000 notes are being used for hoarding, tax evasion and money laundering, the Government of India has stopped printing them, reported The Print.

According to the report, the note will not become invalid, but the denomination will be gradually phased out.

The decision comes on the back of suspicion in the Modi government that the high-denomination banknote was being used for hoarding, tax evasion and money laundering, the report added.

The Rs 2,000 note was introduced in November 2016, after the government demonetised Rs 1,000 and Rs 500 denominations as part of an exercise pitched as a crackdown on black money. At that time, to counter the massive cash shortage, the government flooded the country with new Rs 2,000 notes.

As of March 2018, the total value of the currency in circulation was Rs 18.03 lakh crore, of which Rs 6.73 lakh crore, or 37 per cent, was in Rs 2,000 notes, and Rs 7.73 lakh crore, approximately 43 per cent, in Rs 500 notes. The remaining was in the lower denominations.

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