Half of Rs 2,000 notes in circulation again in system: RBI Governor

The Reserve Bank of India (RBI) Governor Shaktikanta Das on Thursday mentioned 50 per cent of the to-be-withdrawn Rs 2,000 notes got here again to the system.

“Totally so far about Rs 180,000 crore of Rs 2000 notes have come back. This is roughly about 50 per cent of the Rs 2000 notes which were in circulation on March 31,” RBI Governor Das mentioned at a post-monetary coverage assembly press convention. About 85 per cent of these notes, on a provisional foundation, have come again as deposits in financial institution accounts. he added.

“Good thing is that there has been no rush in any of the banks,” Das mentioned, interesting to individuals to not rush to banks in panic.

He significantly urged individuals to keep away from the last-minute rush at financial institution branches.

On May 19, RBI determined to withdraw the Rs 2,000 denomination forex notes from circulation, however mentioned it can proceed to stay as authorized tender. However, RBI has suggested banks to cease issuing Rs 2,000 denomination banknotes with quick impact.

People can alternate or deposit their Rs 2,000 notes in financial institution branches and regional branches of RBI. A non-account holder can also alternate Rs 2000 banknotes as much as a restrict of Rs 20,000 at a time at any financial institution department.

September 30 has been determined because the final date for the aim of finishing the train in a time-bound method and to offer ample time to the general public. RBI is more likely to revisit the September deadline based mostly on the state of affairs going forward.

The Rs 2000 denomination banknote was launched in November 2016 underneath Section 24(1) of RBI Act, 1934, primarily to fulfill the forex requirement of the economic system in an expeditious method after the withdrawal of the authorized tender standing of all Rs 500 and Rs 1000 banknotes in circulation at the moment.

The goal of introducing Rs 2000 banknotes was met as soon as banknotes in different denominations grew to become accessible in ample portions. Therefore, the printing of Rs 2000 banknotes was stopped in 2018-19.

The whole worth of those banknotes in circulation had declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of Notes in Circulation) to Rs 3.62 lakh crore constituting solely 10.8 per cent of Notes in Circulation on March 31, 2023. It was additionally noticed that this denomination shouldn’t be generally used for transactions.

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