Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said that the purpose of printing Rs 2,000 notes has been fulfilled. Addressing the press, the governor said the Rs 2000 bank notes were introduced primarily to replenish the notes withdrawn following demonstration.
“Banks have been advised to make necessary arrangements for exchange of Rs 2,000 bank notes” Das said. "Have withdrawn Rs 2,000 note from circulation as part of RBI’s clean note policy. Let me assure everyone, including those Indians abroad, that we will be sensitive to all the difficulties you face in exchanging or depositing your Rs 2,000 notes. There is no need to worry," Shaktikanta Das told the press.
While talking to the reporters, Das said there was reluctance among merchants to accept Rs 2,000 banknotes earlier as well that may have increased after the withdrawal. "We expect most of Rs 2,000 banknotes to come back to exchequer by September 30 as the withdrawal of Rs 2,000 banknotes is a part of the currency management," the governor said.
He further said that the Indian currency management system is very robust and the impact of withdrawal of Rs 2,000 notes on the economy will be minimal.
On Monday, the RBI issued a statement saying that 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.
He has assured the people saying that the central bank has adequate quantity of notes available already printed. "We have more than adequate quantity of printed notes already available in the system - not just with the RBI but also at the currency chests..."
Regarding exchange of notes, the RBI said that it will be sensitive to difficulties faced by people regarding the exchange of Rs 2,000 banknotes. The exchange of the Rs 2000 currency notes into banknotes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting on Tuesday (May 23).
Das said the existing Income Tax requirement of PAN for Rs 50,000 or more deposits in bank accounts will apply on Rs 2,000 notes as well.
The RBI said in a notification on Monday said that the facility to exchange Rs 2,000 banknotes across the counter should continue as it was earlier and banks must provide appropriate infrastructure at all branches to customers.
The central bank on Friday advised all banks to stop issuing Rs 2000 denomination banknotes with immediate effect. However, the banknotes in Rs 2000 denomination will continue to be legal tender.
On Friday, the RBI in a statement said, "The Rs 2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time. The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, printing of Rs 2000 banknotes was stopped in 2018-19. In pursuance of the 'Clean Note Policy' of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation. The banknotes in Rs 2000 denomination will continue to be legal tender.”