Shops can’t decline Rs 2,000 notes: RBI Governor Shaktikanta Das

Reserve Bank of India Governor Shaktikanta Das on Monday said that shops cannot decline the Rs 2,000 note as it continues to be legal tender.  

"We are withdrawing the Rs 2,000 notes from circulation but they continue as legal tender," Das told reporters, adding that no one can decline the Rs 2,000 notes as directed by the central bank earlier.

The banking regulator on Friday announced that it will withdraw Rs 2,000 notes from circulation. It also urged the public to exchange or deposit Rs 2,000 notes at banks by September 30,2023.

Das also assured that enough time has been given to exchange these notes and there is no need to panic.

"We have given a deadline of September so that the process will be taken seriously. We can't leave it open-ended," said the RBI governor.

"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, the RBI withdraws notes of a particular series and issues fresh notes," Shaktikanta Das added.

"We are withdrawing the Rs 2,000 notes from circulation but they continue as legal tender."

The RBI Governor also told reporters that the Rs 2,000 notes were primarily issued for the purpose of "quickly replenishing the value of money which was being taken out from the system" when the legal tender status of then-prevailing Rs 1,000 and old Rs 500 notes was withdrawn.

The Rs 2,000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy and provide liquidity after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time.

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