Which of the following statements are correct in respect of withdrawal of Rs. 2000 Currency Notes from circulation? (1) This move is a part of RBI's Compound Note Policy (2) It's aim is to provide the Public with high quality Currency Notes (3) Rs. 2000 Currency Notes were introduced in the year 2015 (4) Printing of Rs. 2000 Currency Notes were stopped in the year 2018-19

Explanation

The government, in consultation with the Reserve Bank of India (RBI), decides the printing of banknotes of specific denominations. In this case, no fresh indent has been placed for printing Rs 2000 denomination notes since 2018-19. Governments often decide on a currency mix strategy based on economic needs, transactional demands, and attempts to curb issues like black money, terror funding, and hoarding. The shift away from Rs 2000 notes could be part of such a strategy. There have been concerns raised by politicians and experts about the hoarding of Rs 2000 notes for illegal activities such as terror funding and drug trafficking. These concerns have sparked debates around phasing out the Rs 2000 denomination notes gradually. Banknotes go out of circulation due to soiling and mutilation. When notes become unfit for circulation, they are withdrawn and replaced. This natural process also affects the availability of specific denominations.