The RBI has finally decided to pull the rug and disband the high denomination Rs 2,000 notes. The idea of printing and putting these notes into circulation was only to replenish depleted currency in banks at the time of the original demonetization on November 8, 2016. Although there was buoyancy in the currency on demand to make rapid payments for transactions carried out, but there was always the tendency for hoarding high denomination notes. Hoarding always puts an upward pressure on inflation which could rapidly spiral out of control. There is around Rs 3.6 lakh crore of these Rs 2,000 notes currently held by the public. The loss incurred in printing, storage and handling charges of these notes is borne by the exchequer and the citizens. It is learnt there will be no scrutiny on the antecedents of the depositors, of who have deposited, how much currency and where the deposits are being done. Adequate efforts are being done to print and replenish these junk notes so that the transition is smooth and no inconvenience or hardship caused to the weary public .
