Team Blitz India
NEW DELHI: Reserve Bank of India (RBI) Governor Shaktikanta Das on has said most of the withdrawn Rs 2,000 rupee notes are expected to be returned by the deadline of September 30.
Speaking to reporters on May 22 for the first time since the surprise decision to withdraw the highest denomination currency note was announced, Das said the decision was part of currency management.
Rs 2,000 currency notes continue to be legal tender, Das added. Indian currency management system is very robust, exchange rate has remained stable despite crisis in financial markets due to war in Ukraine and failure of certain banks in the West, he said.
The impact of the withdrawal on the economy will be “very very marginal”, he said, adding Rs 2,000 currency notes made up for just 10.8 per cent of the total currency in circulation. He said Rs 2,000 rupee notes were introduced primarily to replenish the currency that was withdrawn following 2016 demonetisation. Now that the purpose has been served, there are enough notes of other denominations in circulation now, a fact that led to the decision of withdrawal of these notes, he said.
The RBI head also said that printing of this notes had been stopped as well. The central bank would see how many of these notes return back to the banks and accordingly decide on the extension of the September 30 deadline. The RBI governor said that he saw no reason of rushing to the banks as people had four months to get the notes exchanged.
