Bharatiya Janata Party MP and former Bihar finance minister Sushil Kumar Modi demanded in Rajya Sabha on Monday that the 2,000 notes be phased out gradually since they encourage black money and hoarding.

Sushil Modi highlighted the subject during the Rajya Sabha's zero-hour submission. He claimed that the Rs 2,000 notes had vanished from most ATMs across the country and that they would soon cease to be legal tender.

The 2,000 notes, along with the new 500 note, were released in 2016 after the government stopped issuing the previous 500 and 1,000 currency notes in order to fight black money and terrorism, among other things.

"There was no rationale in launching a 2,000 note when the circulation of 1,000 notes had been stopped. 2,000 notes have been hoarded and are frequently used in criminal activities such as narcotics trafficking and money laundering. The 2,000 note has come to represent black money," he said

The 2,000 note should be phased out gradually by the government. Citizens should be allowed two years to swap their 2,000 notes, he suggested.

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