New Delhi, Mar 17 (PTI) Finance Minister Arun Jaitley on Friday said there is no proposal to withdraw the ₹ 2,000 notes that were introduced post demonetisation.

The ₹ 2,000 banknotes were introduced along with new ₹ 500 currency following the withdrawal of old ₹ 500 and ₹ 1,000 notes from November 9, 2016.

"There is no proposal to withdraw the ₹ 2,000 denomination banknote," the minister said in a written reply in the Lok Sabha.

Jaitley further said the ₹ 500 and ₹ 1,000 notes returned to currency chests of the RBI amounted to ₹ 12.44 lakh crore (as on December 10, 2016).

The data obtained in this regard would need to be reconciled with the physical cash balances to eliminate counterfeit notes, accounting errors and possible double counts after which only the final figures will be arrived at, he said.

He added that as on March 3, 2017 the currency in circulation was ₹ 12 lakh crore and as on January 27, it was ₹ 9.921 lakh crore.

Jaitley said the cash recall seeks to create a new "normal" wherein the GDP will be bigger, cleaner and real.

"This exercise is part of the government's resolve to eliminate corruption, blackmoney, counterfeit currency and terror funding.

"This exercise has resulted in an increase in deposits with banks. This will facilitate reduction of interest rates and provide more headroom to banks to expand their credit base," the minister said.

Following demonetisation, several restrictions were imposed on withdrawal from banks as well as ATMs. The restrictions have been gradually removed.

Currency denomination policy confirmed: no proposal to withdraw high-value notes, focusing on cash reconciliation and cleaner GDP. No proposal exists to withdraw the Rs. 2,000 denomination banknote issued after demonetisation; returns of old notes to the central bank must be reconciled with physical cash balances to eliminate counterfeits, accounting errors and double counts before finalising figures. The cash-recall policy is presented as a regulatory measure to reduce corruption and black money, eliminate counterfeit currency and terror funding, and to increase bank deposits to expand credit capacity and support lower interest rates, with prior withdrawal restrictions being gradually removed.