Narendra Modi ji told news agency ANI that there was information that people had hoarded Rs 2000 notes and were using them for “terror funding, drug trafficking, and hoarding black money” after bringing up the subject during Zero Hour in the Rajya Sabha.
On December 12, the Prime Minister of India announced that no new Rs. 2000 notes have been issued from 2018–19.
The Central Government has made it clear how the high-value notes are now circulating in response to the call for the outlawing of Rs. 2000 currency notes. Recently, Sushil Kumar Modi of the BJP requested the Government in Parliament to phase out notes with the denomination of Rs 2000.
According to Prime Minister, The Government should consider phasing out the use of Rs 2000 notes so that people have time to replace them with other minor denominations. He used the example of countries like the US & China which do not use currency notes beyond 100.
From 2018–19 on, 2000 notes have been issued. The percentage of banknotes in circulation with a face value of Rs 2000 has decreased from 22.65% in 2020 to 13.8% by March 2022 NIC. Between 2020 and 2022, the percentage of notes of Rs 500 climbed from 29.7% to 73.3%.
As a percentage of the total Notes in Circulation (NIC) on March 31, 2020, banknotes with a value of 2000 rupees made up 22.6% of the total.
On March 31, 2020, banknotes with the denomination of 2000 made up 22.6% of all Notes in Circulation (NIC) in terms of value. As of 31.03.2022, 13.8% of the total National Insurance Contributions (NIC) were made up of banknotes with a value of 2000 rupees. From 29.7% on March 31, 2000, to 73.3% on March 31, 2022, the proportion of banknotes with a value of 500 rupees in the total national income has climbed. The demand for money is influenced by a number of macroeconomic variables, such as economic expansion and interest rate level.