Rama Krishna Sangem
Reserve Bank of India on December 1, Friday made it clear that Rs 2,000 notes are still valid legal tender. That means the notes can still be deposited in the bank account s of people, if sent to any of the BBI branches or through post or in person. So, those who possess these higher denomination notes need not worry over their legal tender status as they are of the same value and validity.
RBI Chief General Manager Yogesh Dayal issued a press note on Friday giving the latest status of Rs 2,000 notes. “The total value of Rs 2000 notes which was in circulation on May 19, when they were withdrawn was Rs 3.56 lakh crore. But on November 30, the value of these notes in circulation is just Rs 9,760 crore – come down by 97.26 per cent,” said the press note.
This means, only 2.74 per cent are still with people or not returned to the banks. These notes were withdrawn on May 19 this year and RBI gave a deadline of September 30 to exchange or deposit them in banks. However, the same facility was extended till October 7 again. After that there were no fresh deadlines or extension of dates, but the central bank made it clear that the notes can be deposited at any of its branches so that the same can be deposited in the accounts.
Is it an election oriented decision?
Some called it Demonetization 2, resembling a similar cancellation of Rs 1,000 and Rs 500 notes on November, 16 2016. That created a lot of commotion among the general public and several people died in standing in long queues for about eight weeks after. The manner in which PM Modi announced that decision on TV channels has caused a lot of pressure on the public.
But, this withdrawal of Rs 2000 now is different. However, the mild way in which RBI withdrawn the notes suggests that it is a decision made to cut the money power in the just concluded five state assembly elections and that of Lok Sabha early next year. The Election Commission of India too clamped down heavily on the cash distribution by political parties this time.
Thanks to EC pressure, the state police have set up check posts and seized around Rs 600 crore of cash in the last two months in the poll bound states. Of that, a majority of money – around Rs 450 crore is caught in Telangana alone. Of course, around 70 per cent of the cash was returned on submission of proper documents by the holders. It is not clear what purpose the withdrawal of Rs 2000 notes served till now.
