According to the latest Income Tax data, small less than half of the unaccounted cash seized amid this financial was within the category of the most extreme esteem. It was more than 60 per cent amid the final two fiscals. As on March 31, 2019, 3,291 million pieces of ₹2,000 cash note was in circulation with approximately ₹6,582 billion. In terms of volume, this cash note encompasses a share of 3% but in terms of esteem, its share is 31.2 per cent.
The ₹2,000 note is still the foremost prevalent way to store unaccounted cash. The pink money accounts for a small less than half of the dark cash seized so distant this money related year, in spite of the fact that its share has come down from 60% in FY19 and FY18.
Manik Barbhuiya, Financial Advisor at Martin Luther Christian University said, “On the third anniversary of demonetisation, former economic affairs secretary SC Garg said the Rs 2,000 note, which the Modi government brought replacing older 500 and 1,000 notes, were being hoarded and should be demonetised.”
“Cash is still quite high in the system. There is also a stocking of Rs 2,000 notes in evidence. The expansion of digital payments is taking place all over the world. It is happening in India as well. The pace is much slower,” Garg, who took VRS from government service after he was abruptly shifted out of the finance ministry, said in a note. Rs 2,000 note, therefore, is not presently working as a currency of transaction,” he said advocating that they may be demonetised or withdrawn from circulation.
Hemen Parekh, Executive Director, Larsen & Toubro, “Let not fear of making a mistake, hold back bold and honest for decisions like withdrawing Rs 2,000 currency notes, in order to reduce the scourge of Black Money. In most developed economies, the ratio of the “highest denomination” currency note to the “lowest denomination” note, is no more than 100. That fact encourages the use of Digital Money, even for small purchases. Against our use of Cash for transactions at 85% in China, it is only 12 %! And it is reported that China will soon introduce a mobile-app based Crypto-Currency and convert every bank account deposits into this digital currency. Absolutely NO CASH / no paper currency! Maybe the final and permanent elimination of BLACK ECONOMY! We urgently need a real “Demonetization ” – not a ” Remonetization ” masquerading as demonetization!”
In terms of volume, this money note incorporates a share of 3% but in terms of esteem, its share is 31.2 per cent. In a written answer to Rajya Sabha on Tuesday, Finance Minister Nirmala Sitharaman said that an analysis of the case including cash seizures of more than ₹5 crores revealed that the rate of unaccounted cash seized within the category of ₹2,000, out of the full cash seized is 67.91 per cent, 65.93 per cent and 43.22 per cent in Financial Years 2017-18, 2018-19 and 2019-20 respectively.
The Government said a declining drift is unmistakable inside the seizure of unaccounted cash in ₹2,000 notes. ₹2,000 notes were displayed on November 8, 2016, the day on which cash notes inside the category of ₹500 and ₹1,000 were taken out from the system. Indeed at that time numerous of the specialists and financial specialists scrutinized the move of bringing ₹2,000 note, but the Government said this was required for greater exchanges. The call for demonetising ₹2,000 note got to be louder when, on the third commemoration of demonetisation this month, Former Economic Affairs Secretary SC Garg expressed his opinion on this issue.
Meanwhile, the supply of new ₹2,000 notes is declining. The Government has as of now demonstrated that considering the accumulating, supply will be confined. This has fuelled the theory that ₹2,000 notes are before long attending to be demonetised, in any case, the government has more than once denied this. The government brought changes within the Income Tax Act 1961 to require activity against the unaccounted cash transactions and undisclosed cash property. One such later correction endorses that each individual, carrying on business should give office for tolerating installment through the endorsed electronic modes, in expansion to the office for other electronic modes.