Question : Abolition of 500 and 1000 Notes

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF ECONOMIC AFFAIRS

LOK SABHA
UNSTARRED QUESTION NO.4064
TO BE ANSWERED ON 9TH DECEMBER 2016/18TH AGRAHAYANA SAKA, 1938

ABOLITION OF 500 AND 1000 NOTES

4064. SHRI PRABHAKAR REDDY KOTHA:
DR. GOKARAJU GANGA RAJU:

QUESTION
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has received demands from various quarters to permanently abolish/stop big currency notes of Rupees 500 and 1000.
(b) if so, the details thereof and the reasons therefor; and
(c) the steps taken/proposed to be taken by the Government to abolish/stop
the printing of said note in a phase-wise manner in a bid to bring greater
transparency?

ANSWER

MINISTER OF STATE IN THE MINISTRY FOR FINANCE

(SHRI ARJUN RAM MEGHWAL)


(a) to (c): Yes, Madam. Demands with respect to designs/material/denomination/non-issue/ discontinuance of banknotes are received in the normal course from various quarters. In terms of Section 24 (2) of the RBI Act, 1934, the Central Government may, on the recommendation of the Reserve Bank of India, Central Board, direct the non-issue or the discontinuance of issue of bank notes of such denominational values as it may specify in this behalf.

--------