First they spent crores on calibrating the ATM machines for the 2000 rupee note and now they would eventually need to redo it.
I still wonder why there is still no 1000 rupee note, apart from that the quality of 2000 rupees note is so bad that they would more or less disintegrate in the next couple of years!
Seriously insane moves.
Rs 2000 note was only for temporary period. As of now the circulation is reducing and will stop naturally.
Lets take a scenario. A person has Rs 1 Lakh divides in to 10 parts of Rs 10k each
Now lets say RS 2000 was not there but only Rs 1000:
Day 1: A person would deposit 10 notes of Rs 1000 so Rs 10000 in morning, and then withdraw the same value by evening.
Day 2: He would deposit 2nd Bundle of another notes of same value, but he will show in his IT accounts that he deposited the same notes he withdrew on Day 1. He still has the notes with him
Day 2 Evening: the person would again withdraw 10 x Rs 1000 so at the end of Day 2 he has Rs 80K old notes and 20K new notes
Day 3: Now the withdraw limit is Rs 20K, and the person does same and he has now Rs 1 Lakh all new notes of Rs 1K each
However, to the IT, the person has shown that he was having only Rs. 10,000/- as black money initially (i.e. one bundle of 10 Notes of Rs. 1000) and he has rotated the same Rs. 10,000/- by depositing it into Bank account in the morning and withdrawing it in the evening and again depositing the same on next day and so on.
Now if New Rs. 2000 Rupee Note instead of Rs. 1000:
Day 1: Now the person goes to deposit Rs 10000 of 10 notes, Evening he withdraws 5 X 2000 new notes
Day 2: He would deposit the 2nd Bundle of 10x1000 old notes and shows the IT that he deposited same bundle he withdrew on day 1. But since te notes are in new currency he cannot do the same again and will get caught
Because the Bank slip on Day 2 submitted to bank shows deposition of 10 Notes of Rs. 1000 each whereas the Govt knows that person could never have withdrawn on Day 1 any note of Rs. 1000 because they were never Printed
Example also gives you an explanation as to why the withdrawal limit is kept so low because the above method can still be done with Rs. 500 note however, the incentive would be less because the person cannot withdraw more than Rs. 10000/- in a day and even if he withdraws Rs. 10,000/-, there is every possibility that Banks shall give the person, 2000 Rupee note. So now that person cannot follow the above method.
Thats why
@Bapun Raz bro Rs 1000 notes will not come.
Source: Got from a nicely written example on Quora. Felt like sharing. (if MOD wants link i can share)
Govt gave a opportunity to convert black money to white money.
