New Delhi: Banks have started dispensing more of Rs 500 notes instead of Rs 2,000 denomination notes, a move seen as gradual phasing out of the high denomination currency.
The Reserve Bank of India (RBI) in an RTI response had said that RBI had stopped printing Rs 2,000 denomination currency notes.
Although there has been no dictate from the Finance Ministry, banks on their own have decided to fill their ATMs with smaller denomination notes for the convenience of customers, sources said.
Some banks have already started recaliberation of their ATMs and other banks will also follow the suit, sources said.
State-owned Indian Bank has already announced that its has decided to stop using Rs 2,000 notes in their ATMs.
Getting change for a Rs 2,000 note is an issues, keeping that in mind some banks have stopped using Rs 2,000 notes in their ATMs.
According to the RBI's RTI reply, 3,542.991 million notes of Rs 2,000 denomination were printed during 2016-17.
However, 2017-18 saw a substantial reduction in printing and only 111.507 million notes were produced, which further reduced to 46.690 million notes in 2018-19.
This indicates that while these high denomination notes would continue to be a legal tender but will be phased out eventually.
