Rama Krishna Sangem
At least around 50 per cent of the Rs 2,000 notes in circulation in the economy have been returned to the banking system since the announcement of their withdrawal last month, Reserve Bank of India (RBI) Governor Shaktikanta Das said on June 8, Thursday. There is time to deposit them by September 30 this year. Banks started tacking back Rs 2,000 notes from May fourth week.
So, within two weeks, 50 per cent of the notes in circulation are back in banks.
Speaking at a press conference after the announcement of the monetary policy committee, Das said, “As of March 31 this year, Rs 2,000 notes worth Rs 3.62 trillion were in circulation. After the announcement, so far about Rs 1.8 trillion worth of Rs 2,000 notes have come back.”
Das added that out of all the notes that have been coming back, 85 per cent have returned in the form of bank deposits. The rest have been exchanged at various bank branches. On May 19, the RBI announced its plan to withdraw Rs 2,000 notes from circulation based on a review. However, the banknotes in Rs 2,000 denomination will continue to be legal tender, the RBI said in a release.
In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2,000 denomination banknotes from circulation,” the RBI said. The RBI had advised members of the public to deposit Rs 2,000 banknotes in their bank accounts or exchange them for banknotes of other denominations at any bank branch.
The release by the RBI showed the total value of Rs 2,000 banknotes constituted only 10.8 per cent of notes in circulation on March 31, 2023. About 89 per cent of the Rs 2,000 denomination banknotes were issued before March 2017.
In the monetary policy announcement, Das said that the MPC has unanimously announced to keep the repo rate unchanged at 6.5 per cent. By a majority of 5-1, the MPC also decided to continue with its stance of “withdrawal of accommodation”.
