Rs 2,000 Note introduction not an over-night decision

Wed Jan 11 2017 11:37:10 GMT+0530 (IST)

Centre & RBI has done enough exercise before announcing Demonetisation and introducing Rs 2,000 to address the Cash Crunch. This was revealed in a 7-page note RBI set to Veerappa Moily heading Parliament Committee of Finance.

On November 7th last year, Government has suggested RBI to scrap Rs 500 and Rs 1000 notes to address black money, fake currency and terror financing. The very next day, Modi addressed the nation to announce note ban.

Actually, RBI sought Government's approval for introducing Rs 5,000 and Rs 10,000 denomination notes. But, Centre rejected the proposal straight away. On May 18th last year, Modi Government decided to introduce Rs 2,000 with advanced security features. RBI came up with the design of Rs 2,000 with new series, color and theme. Centre approved the new note with just 10 days.