Finance Minister Arun Jaitley said that "There is no proposal to withdraw the Rs. 2,000 notes that were introduced post demonetisation."

The notes were introduced along with new Rs. 500 currency after the withdrawal of Rs. 1,000 and old Rs. 500 notes from November 9, 2016.

“There is no proposal to withdraw the Rs. 2,000 note,” the Minister said in a written reply in the Lok Sabha. The Rs. 1,000 and old Rs. 500 notes returned to the currency chests of the RBI amounted to Rs. 12.44 lakh crore.

As on March 3, 2017, the currency in circulation was Rs 12 lakh crore and as on January 27, it was Rs 9.921 lakh crore. The cash recall seeks to create a new "normal" wherein the GDP will be bigger, cleaner and real, he added.

"This exercise has resulted in an increase in deposits with banks. This will facilitate reduction of interest rates and provide more headroom to banks to expand their credit base," the minister said.

Following demonetisation, several restrictions were imposed on withdrawal from banks as well as ATMs. The restrictions have been gradually removed.

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