RBI: Rs 2000 notes still legal tender

Rs 2,000 notes

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 “The total value of Rs 2000 notes which was in circulation on May 19, when they were withdrawn was Rs 3.56 lakh crore.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  These notes were withdrawn on May 19 this year and RBI gave a deadline of September 30 to exchange or deposit them in banks.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 However, the mild way in which RBI withdrawn the notes suggests that it is a decision made to cut the money power in the just concluded five state assembly elections and that of Lok Sabha early next year.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.

Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at excelindiaweb123@gmail.com