New Delhi: RBI Governor Shaktikanta Das on Monday clarified that the Rs 2,000 notes were withdrawn from circulation as it fulfilled its purpose adding that the impact of the move on the country’s economy was ‘very very minimal’.
He was interacting with the media regarding fears over the decision to withdraw Rs 2,000 currency notes.
"Rs 2,000 banknotes were introduced primarily to replenish the currency that was withdrawn following the 2016 demonetisation. Today there are enough notes of other denominations in circulation. Even the circulation of Rs 2,000 notes as we have explained has come down from its peak of 6 lakh 73,000 crore to about 3 lakh 62,000 crores. The printing also has been stopped. The notes have completed their life cycle," the RBI Governor said.
Das said that announcement of the exchange of ₹2,000 bank notes is part of RBI's currency management operations and is in tune with the clean note policy.
He further assured the people that there is no need to rush to exchange or return their Rs 2,000 notes as there is a time frame of four months.
"For a long time, the Reserve Bank 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," he added.
In a surprise announcement on Friday, RBI announced the withdrawal of the highest denomination of currency note which should be returned by the deadline of September 30.
While the withdrawn 2,000 rupee notes can either be deposited in bank accounts or exchange for other currency, banks have been advised to make necessary arrangements for exchange, he said.
"We expect most of Rs 2,000 banknotes to come back to the exchequer by September 30. "We have more than adequate quantities of printed notes already available in the system, not just with RBI but with currency chests operated by banks. There is no reason for worry. We have sufficient stocks, no need to worry," Das said.
Das further added that the Indian currency management system is very robust and exchange rate has remained stable despite crisis in financial markets due to war in Ukraine and failure of certain banks in the West.
The State Bank of India clarified on Sunday that the exchange of notes, which will begin on May 23, will be allowed without any requisition slip or identity proof.