No decision to discontinue printing of ₹2,000 banknotes: MoS Finance Anurag Thakur

The government on Monday said no decision has been taken to discontinue printing of ₹2,000 banknotes, and state-owned SBI and Indian Bank are reconfiguring ATMs for ₹500 and ₹200 notes.

"No indent was placed with the presses for printing of ₹2,000 denomination notes for 2019-20. However, there is no decision to discontinue the printing of ₹2,000 banknotes," Minister of State for Finance Anurag Singh Thakur said in a written reply in Lok Sabha.

The minister was replying to a question whether the government has stopped the printing of new ₹2,000 currency notes and if the public sector banks have issued any circular to stop the circulation of ₹2,000 notes through ATMs.

"In view of the higher circulation of currency notes of ₹500 and ₹200 denominations and inconvenience faced by the customers in exchanging ₹2,000 currency notes, two of the public sector banks namely State Bank of India and Indian Bank have been issued instructions to the field functionaries to reconfigure the ATMs for currency notes of ₹500 and ₹200 denominations," Thakur said.

He said printing of banknotes of a particular denomination is decided by the government in consultation with the Reserve Bank of India (RBI) to maintain desired denomination mix for facilitating demand of the public.

Banknotes of ₹2,000 denomination worth ₹7.40 lakh crore have been printed and supplied so far, he said. The total face value of banknotes of ₹2,000 denomination in circulation and in currency chests was ₹5.49 lakh crore and ₹0.93 lakh crore, respectively.

Detailing about the denomination of lower-value currencies in circulation as on March 5, he stated that there are 19,624.77 million pieces of ₹100 notes valued at ₹1.96 lakh crore; 8,556.84 million for Rs 50 notes valued at ₹42,784.20 crore; ₹20 and Rs 10 denomination notes were valued at ₹16,619.60 crore and ₹30,510.79 crore, respectively.

"The quantum of banknotes that needs to be printed broadly depends on the requirement for meeting the demand for banknotes due to inflation, GDP (gross domestic product) growth, replacement of soiled banknotes and reserve stock requirement," Thakur said.

As on March 5, 67,002.24 million pieces of banknotes of 10, 20, 20 and 100 rupees denominations and 5,005.98 million pieces of coins of 10 rupee denomination were in circulation, the minister added.

"Printing of banknotes of particular denomination is decided by the government in consultation with the RBI to maintain desired denomination mix for facilitating transactional demand for public," he added.