Why Rs. 2000 notes circulation dropped?

New Delhi, July 20: After the Demonetisation, the govt has been introduced the new 2000 Rupee Currency notes. At that time many of the people have been suffered to get the change. Later they introduced new 500 notes. RBI said in a statement that, bankers feel there is now a drop in the circulation of Rs 2,000 notes.

State Bank of India's Chief Operating Officer Neeraj Vyas was quoted as saying, "Presently we are receiving currency notes from the Reserve Bank in the denomination of Rs 500 in high-value currency... The Rs 2,000 denomination notes are coming over the counters by way of recirculation." He added that areas in Andhra-Telangana, Patna and Kolkata were facing cash shortages.

Latest RBI data shows the currency in the market was Rs 14.5 lakh crore as of June 23, against the Rs 17 lakh crore before November. On November 8, 2016, the central government demonetised Rs 500 and Rs 1,000 notes, which had made up around 84% of the country’s liquidity at the time.