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Rs 2,000 note will continue to be legal tender, no reason to rush to banks: RBI

According to Das, the deadline was imposed primarily with the intention of encouraging people to return the notes.

Edited By: Nitin Kumar New Delhi Updated on: May 22, 2023 12:27 IST
Rs 2,000 note will continue to be legal tender, no reason
Image Source : PTI Rs 2,000 note will continue to be legal tender, no reason to rush to banks: RBI

Shaktikanta Das, governor of the Reserve Bank of India (RBI), said on Monday that no one should rush to return or exchange their 2,000 rupee notes, a day before people start approaching banks to give up the high-value notes. He likewise affirmed that even after September 30, the notes would continue to be legal.

"There is no reason to rush to banks now. You have four months, till September 30," the RBI Governor said.

According to Das, the deadline was imposed primarily with the intention of encouraging people to return the notes.

The chief of the RBI added, "Rs 2000 bank notes were introduced primarily to replenish the notes withdrawn following demonstration."

He said that banks have been told to make the necessary arrangements for exchanging 2,000 notes worth of bank notes starting tomorrow.

The governor said the Rs 2000 note was basically given to renew cash, taken out from the framework during the demonetisation of Rs 500 notes and Rs 1,000 notes.

Shaktikanta Das said today in an interview with the media that the currency's higher value was created quickly to increase the economy's liquidity. He also said that the number of Rs. 2000 notes in circulation has dropped below 50% since then.

When asked about the September 30 deadline for exchanging Rs 2000 notes, the governor stated that it was set so that it would be taken seriously.

Based on the circumstances, the governor of the apex bank stated that it would reconsider the September deadline.

The Rs 2000 denomination of banknotes was taken out of circulation on Friday by the Reserve Bank of India, but they will still function as legal tender. It advised banks to stop issuing banknotes in the Rs 2000 denomination immediately.

In the meantime, the RBI stated that until September 30, 2023, individuals would be able to deposit Rs 2000 banknotes into their accounts and/or exchange them for banknotes of a different denomination at any bank branch.

The Rs 2000 division banknote was presented in November 2016, principally to meet the money prerequisite of the economy in a quick way after the withdrawal of the lawful delicate status of all Rs 500 and Rs 1000 banknotes available for use around then.

Also Read | 'We'll not see any perceptible effect on economy': Ex-NITI Aayog Vice Chairman on 2,000 notes withdrawal

Also ReadNo ID proof or forms required for exchanging Rs 2,000 notes of up to Rs 20,000-limit: SBI

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