Over two-thirds of Rs 2,000 notes returned within a month: RBI governor
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Reserve Bank of India (RBI) Governor Shaktikanta Das has revealed that more than two-thirds of the Rs 2,000 currency notes, worth approximately ₹2.41 lakh crore, have been returned to the system within a month of the recall order.
The recall of the high-denomination banknotes, amounting to around Rs 3.62 lakh crore, was implemented as part of the clean note policy.
Speaking to PTI, Governor Das shared the latest figures: "More than two-thirds or Rs 2.41 lakh crore worth of the ₹3.62 lakh crore (as of March 31, 2023) of the now-recalled 2000 banknotes have come back to the system as of mid-last week." He explained that 85% of the returned money is in deposits, while the remaining amount is from currency exchanges.
Despite the September 30, 2023 deadline set by the central bank for exchange/deposits, Governor Das assured the public that there is no need to rush in claiming their money. He emphasised that the note recall will not have any negative impact on monetary stability. Referring to a recent analyst report suggesting that the recall would lead to higher consumer spending and consequently bolster the economy, Governor Das declined to comment but expressed his belief that there would be no adverse effects.
The RBI and the government have projected a GDP growth rate of 6.5% for the fiscal year, with the first quarter at 8.1% and a gradual tapering in the following quarters. The Rs 2,000 banknotes, introduced in November 2016 following the demonetization of Rs 500 and Rs 1,000 notes, will continue to be legal tender even after the September 30 deadline.
While the RBI had previously indicated the possibility of cancelling the legal tender status of the Rs 2,000 notes, Governor Das stated his uncertainty about making such a recommendation to the government.
The recall order primarily affects banknotes issued prior to March 2017, which constitute around 89% of the Rs 2,000 notes. These notes have an estimated lifespan of four to five years. As of March 31, 2023, the total value of the Rs 2,000 banknotes in circulation has declined to Rs 3.62 lakh crore, accounting for only 10.8% of the total notes in circulation.