The Centre should phase out the Rs 2,000 note in a “gradual manner”, BJP Rajya Sabha member Sushil Kumar Modi said in the Upper House on Monday. He said adequate time should be given to people to convert their legitimate holdings into currency notes of smaller denomination. “While Rs 2000 note was introduced by RBI to replace the demonetised Rs 500 and Rs 1,000 notes at a faster pace in 2016, their printing has (been) stopped in the last three years due to several challenges associated with circulation (of the note),” Sushil Modi said. “Instances of hoarding and black marketing of Rs 2000 notes are emerging.” He said: “Many advanced countries have currency notes in small denominations. For instance, $100 in the US is the highest, 100 yuan in China, CAD 100 in Canada, Euro 200. In contrast, nations like Pakistan and Sri Lanka have 5000-rupee as the highest denomination. The EU discontinued 500 Euro notes in 2018 and Singapore stopped issuing S$10,000 notes in 2010 to curb illegal activities of drug trafficking, money laundering, terror funding, tax evasion etc.” “Since India is also becoming a hub for digital transactions, which also entail settlements of larger amounts, there is limited need for having a high-denomination currency note of Rs 2000,” he said.
