Half of Rs 2,000 notes in circulation back in system, 85% as deposits: RBI Gov Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das said that Rs 1.80 lakh crore of Rs 2,000 notes – amounting to almost half of the notes in circulation – have come back after the RBI announced the withdrawal of the notes. Out of that, nearly 85 per cent of Rs 2,000 notes have come back to the system as deposits and the rest have been exchanged. 

Furthermore, Governor Das, who was addressing the media in a press conference after the Monetary Policy Committee announcements on Thursday, also said that the central bank is not considering withdrawing Rs 500 notes or re-introducing Rs 1,000 notes, and urged the public to not speculate over the same. 

The RBI announced in May that it would withdraw these high-value notes from circulation, and permitted the exchange or deposit of Rs 2,000 notes till September 30. The inflows are expected to push up growth in bank deposits. 

Also read: Informal surveys showed that Rs 2,000 banknotes were not commonly used: RBI Governor Das

In an event hosted by the Confederation of Indian Industry (CII) in May, Shaktikanta Das said that the purpose of the Rs 2,000 banknotes were fulfilled and that informal surveys also showed that the note was not put in use commonly. “We took a view that it was not being used in transactions at all. Through our informal surveys we found that the note was not commonly being used,” he said to the gathering of industry executives. 

The RBI, during the announcement, had also stated the same. In its peak on March 31, 2018,  the total value of the banknotes in circulation was Rs 6.73 lakh crore, which had declined to Rs 3.62 lakh crore on March 31, 2023. The RBI also stated that the stock of banknotes of other denominations was adequate to meet the currency requirement of the public. 

The RBI as well as the Governor had said that the Rs 2,000 banknotes were introduced to replenish the system following the demonetisation exercise in November 2016 that saw the sucked out Rs 500 and Rs 1,000 notes from circulation. 

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