Every few years, the currency of a country goes through some changes – be it in denominations or design.
Since the past few days, social media has been flooded with new Rs. 2,000 notes, which are being called a hoax, given that the RBI has made no comment on them.
So far, there has been no word on these notes from the central bank, however, Hindu Business Line had reported back in October that the government is preparing the new currency.
It was reported that the notes has already begun printing at a press in Mysuru. The reason given was the appeal from some quarters, asking for the Rs 500 and Rs. 1,000 notes to be pulled from circulation to prevent money laundering.
But, is a currency of such a denomination needed?
Recap of Currency
As transactions are becoming cashless thanks to mobile wallets, debit and credit cards, a Rs. 2,000 note could seem unnecessary.
However, in the past, there were notes of Rs. 5,000 and Rs. 10,000 that were in circulation way back in 1954. But these were necessary in those times to carry out larger transactions.
They were demonetised in 1978 to make sure they were not used to carry out large and fraudulent transactions.
Will High-Denominations Come Back?
Coming back to the question about the Rs. 2,000 note, will the RBI release them, given their demonetisation in the past?
Source: Hindu Business Line
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