Declining trend in seizure of unaccounted cash in denomination of ₹ 2,000 notes

No proposal to stop circulation of ₹ 2,000 notes

An analysis of the search cases, conducted by Income Tax Department (ITD), involving cash seizures of more than ₹ 5 crores in the last three Financial Years reveals that there is a declining trend visible in the seizure of unaccounted cash in denomination of ₹ 2,000 notes. The percentage of unaccounted cash seized in denomination of ₹ 2,000, out of the total cash seized is 67.91%, 65.93% and 43.22% in Financial Yea₹ 2017-18, 2018-19 and the current financial year, respectively. This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya Sabha today.

In reply to the question of whether the Government is contemplating to stop circulation of the ₹ 2000 notes in phased manner, the Minister stated that there is no such proposal with the Government.

Citing the Annual Report of the Reserved Bank of India, the Minister further stated that the share of value of ₹ 2,000 denomination banknotes in circulation (₹ 6,582 billion) to the value of total Notes in Circulation (₹ 21,109 billion) was 31.18%, as on 31.03.2019.

Circulation of high-denomination banknotes: decline in seizure share and no government proposal to withdraw notes. Tax authority analysis shows a declining trend in seizures of unaccounted cash in Rs. 2,000 denomination notes-67.91%, 65.93% and 43.22% over three financial years. The Government has stated it has no proposal to stop circulation of Rs. 2,000 notes and cites central bank data that those notes comprised 31.18% of the value of notes in circulation as of the reported date.