Designed by: Mohsin Shaikh
Produced by: Harshita
RBI Governor Shaktikanta Das on Monday explained the reasons behind the withdrawal of Rs 2,000 denomination bank notes. He also clarified Rs 2,000 notes exchange, deposit deadline, rules and limits
Explaining the reason behind withdrawing Rs 2,000 notes from circulation, ShaktiKanta Das stated that these notes were printed 4-5 years back. Their purpose has got over, and the notes have completed their life cycle. "Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank," said Das
Shaktikanta Das reiterated the RBI press note which stated 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which was being taken out from the system when the legal tender status of then-prevailing Rs 1,000 and Rs 500 notes was withdrawn
"For a long time, RBI has been following a clean note policy. From time to time, RBI withdraws notes of a particular series and issues fresh notes. We are withdrawing the Rs 2,000 notes from circulation but they continue as legal tender," the RBI Governor said
Talking about why the Reserve Bank has given time till September for Rs 2,000 note exchange or deposit, Das stated that banks have been advised to make necessary arrangements, so that people would not have to stand in hot weather
"The process to exchange or deposit Rs 2,000 notes starts from tomorrow. There’s no reason for people to rush to banks for the exchange of Rs 2,000 notes. We gave four months time so that the process will not remain open-ended," Das said, assuring all Indians living abroad that the central bank will be sensitive to all problems and difficulties
"Do not worry, exchange at ease. We will address all problems," RBI governor said, adding that the RBI has given a deadline of September so that the process will be taken seriously. "Leaving the deadline open-ended will make the exchange of notes an endless process," he added
Shaktikanta Das emphasised that people still make purchases using Rs 2,000 till it is legal tender. "By 30th September, almost all Rs 2,000 notes will come back to us. I can't speculate what will happen after September 30. We haven't said that the Rs 2,000 note will stop being legal tender after September 30," Das said
Shaktikanta Das clarified that in banks, cash exchange and cash deposits or any cash transaction will go by the existing usual procedure
Meanwhile RBI on Monday issued a notification on the exchange facility of Rs 2,000 banknotes "The facility of exchange of Rs 2000 banknotes across the counter shall be provided to the public in the usual manner, that is, as was being provided earlier," the notification read
Exchange of the Rs 2,000 banknotes into banknotes of other denominations can be made up to a limit of Rs 20,000 at a time without the need for a requisition slip at any bank starting tomorrow, May 23, said RBI in the latest notification