The Reserve Bank of India (RBI) recently disclosed that approximately 50% of the Rs 2,000 denomination notes available in circulation, have returned to the system. RBI Governor Shaktikanta Das shared this information during a post-monetary policy meeting press conference, emphasizing that the return of these notes has not caused any panic or rush in banks.
Governor Shaktikanta Das stated that out of the Rs 2,000 notes that were in circulation on March 31, about Rs 180,000 crore has been returned, accounting for roughly half of the total. Impressively, around 85% of these notes have been deposited in bank accounts, indicating a calm and orderly return process. The absence of any rush in banks reflects the public’s understanding of the phased withdrawal and their adherence to the guidelines set by the RBI.
Withdrawal Process and Advice for 2,000 notes
Following the RBI’s decision to withdraw the Rs 2,000 denomination currency notes, individuals can exchange or deposit their notes at bank branches and regional branches of the RBI. It is noteworthy that even non-account holders can exchange these notes up to a limit of Rs 20,000 at any bank branch. The RBI Governor has urged the public to refrain from panicking and rushing to the banks, particularly in the final days before the September 30 deadline. The intention behind establishing a deadline is to ensure a time-bound completion of the exchange process and to provide ample opportunity for the public to carry out the necessary transactions.
Purpose and Decline of the Rs 2,000 Denomination:
The introduction of the Rs 2,000 denomination banknote in November 2016 aimed to meet the immediate currency requirements of the economy after the demonetization of Rs 500 and Rs 1,000 notes. However, as other banknotes in different denominations became widely available, the need for the Rs 2,000 notes diminished. Consequently, the printing of these notes ceased in 2018-19. Over time, the total value of Rs 2,000 notes in circulation decreased significantly from its peak of Rs 6.73 lakh crore on March 31, 2018, to Rs 3.62 lakh crore, constituting only 10.8% of the total notes in circulation as of March 31, 2023. Furthermore, it was observed that this denomination was not commonly used for day-to-day transactions.
Reevaluation of September Deadline:
The RBI has set September 30 as the final date to complete the withdrawal process, allowing for a structured and time-bound transition. However, the central bank remains open to revisiting the deadline based on the evolving situation. This flexibility ensures that any unforeseen circumstances or public requirements can be taken into account during the process.
The RBI’s announcement regarding the return of approximately 50% of the Rs 2,000 notes reveals a smooth transition in the withdrawal process. The public’s calm response and adherence to the guidelines have prevented any undue panic or rush at banks. With the deadline approaching, individuals are encouraged to utilize the available channels for exchanging or depositing their soon-to-be obsolete currency. As the Rs 2,000 notes gradually exit circulation, the RBI remains vigilant, ready to adapt to changing circumstances and ensuring a successful transition for the nation’s currency system.
