It seems Central Government is planning for another demonetization of big notes. Recent reports stating that demonetization of big notes may happen again. Also, this news has spread to Parliament. Today Finance Minister Arun Jaitley has given a clear idea about demonetization of big notes. While many questions regarding demonetization were left unanswered. Preserving the black money in terms of big notes is the easiest task when compared to the small notes. So, what is the decision taken by the government to eradicate the black money? Check here.
Is Government Planning to Demonetise Rs 2000 Notes Again?
The RBI has declined the production of Rs 2000 notes. There may be a ponder plan to restrict the supply of these notes. The RBI hurried to print Rs 2,000 notes promptly after demonetization was reported in November 2016 and that supply may have achieved a level that the national bank is not happy with now. This might be a cognizant methodology to check the new supply of high-value notes and print all the more low-value notes.
What has promoted fuelled rumours about another round of demonetization is the Government introducing Rs 200 note. With more Rs 200 and Rs 500 notes available for use, the common people won’t be affected much by a restriction on the Rs 2,000 note. The boycott will be a viable stride against black money as demonetization of Rs 2,000 note will hit hoarders more than the majority.
Rs 2,000 note had a vital reason when it was introduced after demonetization in November 2016. It was intended to facilitate the lack of cash supply. Presently there is no such need. If the Government intends to expand the supply of lower category notes, such as Rs 500 and Rs 200 and confine supply of Rs 2,000 note, it is very conceivable that these means would prompt demonetization of Rs 2,000 note.