Even though Rs 2,000 will continue as a legal tender, it will slowly be taken out of circulation. Modi government stopped its printing becoming suspicious of the money being used for laundering, tax evasion and hoarding. There was no official comment on taking Rs 2,000 out of circulation by the Reserve Bank of India. Back in 2016 November, when the Modi government demonetised old Rs.500 and Rs1000, then Rs 2000 was introduced. This drove out over 85% of the currency notes at the time. Cash shortages were reported in several cities, in the earlier half of 2018. This can be due to money laundering and hoarding ahead of legislative assembly elections in 5 states and also because people did not trust the banks with their money after the Nirav Modi scam.
Get the latest Banknotes news and updates with our free iOS and Android app. Download Now!
