The RBI today decided to withdraw the Rs 2000 note by reasoning the clean note policy. But is it the main reason. Not really.
A big necessity at the time of demonetisation
The issuance of a high denomination note of Rs 2,000 was a necessity at the time of demonetisation because the withdrawal of currency impacted 86 per cent of the total currency in the system. It was not a natural choice to issue such high denomination notes. The Rs 2,000 notes helped in pushing more currency into the system to support the economy.
Encouraging hoarding of high denomination notes
The Rs 2,000 note was encouraging hoarding of such high denomination notes by black marketeers as it was easy to store and exchange. In fact, these notes soon started disappearing from the market. The banks were complaining about not getting enough Rs 2,000 notes as all banks have had recaliberated their ATMs to accommodate Rs 2,000 notes.