Why India Move to Ban 2,000 Rupee Note.?

Sindujaa D N
The decision to ban the 2,000 rupee note in india was an important move by the government to address several issues plaguing the country's economy.  First, the 2000 rupee note was introduced as part of the demonetization process in 2016 to fight black money, counterfeiting and corruption. However, over time it has been found that the reintroduction of higher denominations encourages money hoarding, tax evasion and money laundering. 

The ban on the 2000 rupee note was seen as a step towards solving this problem. Second, the large denomination of the 2,000 rupee note made it more vulnerable to counterfeiting, which posed a threat to the integrity of the monetary system. By removing the banknote from circulation, the government wanted to curb counterfeiting and protect the economy.


In addition, the ban on the Rs 2,000 note was intended to encourage wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital transactions and encourage a cashless economy. It was believed that restricting the availability of high-value cash would encourage people to adopt more transparent, efficient and simple electronic payment methods.


Overall, the decision to ban the 2,000 rupee note was driven by the government's goal of tackling black money, reducing corruption, fighting counterfeiting and encouraging wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital transactions. Although this caused some inconveniences in the short term, it was seen as a necessary step towards creating a more robust and transparent financial system in India.

For more interesting updates click and follow Indiaherald WhatsApp channel

Find Out More:

2000 rupees

Related Articles: