The majority of the nation did not react favorably to the 2016 demonetisation exercise. The media was abuzz about the new Rs 2,000 note's features after it was implemented.
The most recent action taken by the Reserve Bank of Is the Rs 2,000 note the most valuable money the Indian central bank has ever printed?
Nope. The fact that India once possessed Rs 5,000 and Rs 10,000 notes may surprise you. Yes, the highest denomination of money the RBI has ever produced was Rs 10,000.
The RBI's decision to remove the 2000 rupee note, which is the biggest denomination, from circulation has ignited a new dispute.In 1938, the RBI printed the first Rs. 10,000 note. January 1946 saw its demonetization, but it was revived in 1954. The reintroduction of the Rs 5,000 and Rs 10,000 notes was suggested by the RBI, which was led by former governor Raghuram Rajan. According to the data the RBI gave the Public Accounts Committee, the central bank had made the suggestion in October 2014; the Times of India revealed this in 2017.
This concept was proposed with the justification that inflation was eating away at the value of the Rs 1,000 note.
The RBI was notified by the government of Prime Minister Narendra Modi in May 2016 of its "in principle" plan to launch a new series of Rs 2,000 notes. In June 2016, the printing presses were ultimately issued instructions. The late Arun Jaitley, India's finance minister at the time, subsequently stated that the government chose to use Rs 2,000 notes instead of the suggested Rs 5,000 and Rs 10,000 notes because it wanted replacement money to be available right once.
Later on, Raghuram Rajan said that the risk of counterfeiting made it challenging to have larger value currency notes.
In September 2015, Rajan stated, presumably following the government's rejection of the RBI's proposal, "Given that we are in a somewhat difficult neighbourhood, there is some concern on the extent of forgery that will take place if we do too large value notes."When a country experiences extremely high inflation—a situation in which the value of the currency declines to the point where even minor purchases necessitate a substantial amount of currency—it prints high denomination notes.
Retail inflation in India exceeded 10% while Rajan was the governor of the RBI. During the Manmohan Singh administration, Raghuram Rajan assumed the role of Governor of the Reserve Bank of India, with retail inflation in the country hovering around 10.70 percent. However, by the time he departed the RBI in 2016 during the Narendra Modi administration, it had almost halved.
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