The Lifecycle of Rs2000 note

Explore the challenges surrounding India's Rs 2000 note, including its discontinuation and difficulties in exchanging it for smaller denominations. Discover how businesses and individuals cope with a shortage of change, leading to a rise in digital payments

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By Arrow07


Last updated on Jun 27, 2023, at 04:41 pm IST

Posted on Jun 27, 2023, at 04:41 pm IST

India's vast Economic background is reliable in cash transactions. When it comes to exchanging notes most of the business holders and owners refuse to change the Rs 2000 note for a very minimal purchase which the buyer or the customer faces lots of difficulty in their purchase period.

The 2000 rs note was launched on November 8, 2016
as an antidote to the holy trinity: counterfeiting, black marketing, and hoarding. Morality and intrigue were thickly laden upon the launch of these new notes. Demonetization was hailed as an act of ‘nationalism’ against dishonest men and their means.

For the last couple of years, the 2000 rs note has been stopped printing in the nation as most of the notes are missing and are yet to get recovered due to which the RBI has stopped the printing of 2000 notes in India

At gas stations across India, nearly 90 percent of purchases have been made in 2,000-rupee notes since the announcement, up from the normal level of 10 percent, Ajay Bansal, the president of the All India Petroleum Dealers Association, said in a statement. Because many customers try to use the bills to buy as little as 100 or 200 rupees worth of gas, he added, “outlets are extremely short of change across the country.”

One more reason could be the difficulty people face in breaking the higher value notes into change, due to which most choose to go for digital payments which will help to generate more income tax from it.

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