Confused over Rs 2000 notes? RBI governor Shaktikanta Das clears the air

The Reserve Bank of India, in a landmark decision recently, announced the withdrawal all Rs 2,000 currency notes from circulation. RBI Governor Shaktikanta Das on Monday clarified that the withdrawal of Rs 2000 notes from the system was not a sudden decision, but in fact a part of the currency management operations of the Reserve Bank of India. For a long time now, the Reserve Bank has been following a clean note policy. From time to time, the RBI withdraws notes of a particular series and issues fresh notes. For the first time since the surprise decision to withdraw the highest denomination currency note was announced, Das cleared the air and said the decision was part of currency management of the central bank. “We are withdrawing the Rs 2000 notes from circulation but they continue as legal tender,” he informed. “We expect most of Rs 2,000 bank notes to come back to the exchequer by September 30,” he said. “We have more than adequate quantities of printed notes already available in the system, not just with RBI but with currency chests operated by banks. There is no reason for worry. We have sufficient stocks, no need to worry,” he said.

#WATCH | #Rs2000CurrencyNote | RBI Governor Shaktikanta Das says, "Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank...For a long time, the Reserve Bank has been following a clean note policy. From time to time, RBI… pic.twitter.com/Rkae1jG0rU

— ANI (@ANI) May 22, 2023

* The Reserve Bank of India last week announced the withdrawal all Rs 2,000 currency notes from circulation. * The central bank gave a deadline of 30 September 2023 to either deposit or exchange the notes at banks. *  But, unlike the 2016 demonetization move, the central bank has said that the notes will remain legal tender until the given deadline. * The impact of the withdrawal of the currency on the economy will be “very very marginal”. * Rs 2,000 currency notes make up just 10.8 per cent of the total currency in circulation. * Rs 2,000 notes were introduced primarily to replenish the currency that was withdrawn following the 2016 demonetization move. * Withdrawn 2,000 rupee notes can either be deposited in bank accounts or exchanged for other currency * Banks have been advised to make necessary arrangements for exchange. The Indian currency management system is very robust, and the exchange rate has remained stable despite a lot of turmoil in financial markets due to the war in Ukraine and huge failures of certain banks in the West, he said. RBI, the governor said, was sensitive to difficulties faced by people and would come out with regulations if need be. Existing income tax requirement of furnishing PAN for deposits of Rs 50,000 or more in bank accounts will continue to apply for deposits of the withdrawn 2000 rupee notes, he said. Das also added that liquidity in the system is being monitored on a daily basis. Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.