(ET)
The Reserve Bank of India appears to be squeezing the circulation of Rs 2000 currency notes to restrict hoarding of it and proliferation of black money. The proportion of Rs 2,000 currency notes in circulation has fallen to 37% of total notes, from 50% earlier while the indent for Rs 2,000 notes collapsed to 15.1 crore pieces last year from 350 crore pieces a year earlier.
There were reports of illegal hoarding of the Rs 2000 bank notes after it was introduced to remonetise the withdrawn Rs 500 and Rs 1000 bank notes from the system. The circulation of Rs 500 notes surged to 43% from 23% a year back while it was less than 48% share seen in FY16.
