No plan to print currency notes to tide over economic crisis: FM

New Delhi: Union finance minister Nirmala Sitharaman said on Monday that the government has no plans to print currency notes to overcome the economic crisis faced by country due to the outbreak of the coronavirus disease (Covid-19).

She was asked a question by a member of the Lok Sabha about any such plans, to which Sitharaman replied "No Sir".

She said that India's Gross Domestic Product (GDP) contracted by approximately 7.3 per cent during 2020-21, but added that the fundamentals of the economy remain strong.

"The fundamentals of the economy remain strong as gradual scaling back of lockdowns, along with the astute support of Atmanirbhar Bharat Mission has placed the economy firmly on the path of recovery from the second half of FY 2020-21," said Sitharaman.

In March this year, the government had informed Parliament that ₹2,000 currency notes have not been printed in the last two years.

"During the years 2019-20 and 2020-21, no indent has been placed with the presses for printing of ₹2000 denomination banknotes," said Anurag Thakur, who then held the portfolio of minister of state for finance.

He added that printing of banknotes of a particular denomination is decided by the government in consultation with the Reserve Bank of India (RBI) to maintain desired denomination mix for facilitating transactional demand of the public.

The Reserve Bank of India (RBI) had in 2019 stated that 3,542.991 million notes of ₹2,000 were printed during the financial year 2016-17 (April 2016 to March 2017). However, in 2017-18, only 111.507 million notes were printed, which further reduced to 46.690 million notes in the year 2018-19.

The ₹2,000 notes were introduced in November 2016, soon after the government withdrew ₹500 and ₹1,000 notes in an attempt to curb black money and fake currencies. While a new ₹500 note was printed, ₹1,000 currency notes were discontinued. Instead, ₹2,000 note was introduced. Besides ₹2000, the other currency notes in circulation are of the denomination ₹10, ₹20, ₹50 and ₹100.