Mumbai, May 22: Reserve Bank of India Governor Shaktikanta Das has reaffirmed that Rs 2000 notes will continue to be recognized as legal tender, despite the recent announcement of their withdrawal from circulation. Addressing the media today, he emphasized that there is no need for individuals to rush to banks, as the notes will retain their value.
The introduction of the Rs 2000 note was primarily aimed at replenishing the currency supply that had diminished during the demonetization process of Rs 500 and Rs 1000 notes. However, its circulation has declined significantly since then, accounting for less than 50 percent of the total currency in circulation.
Regarding the September 30 deadline for exchanging Rs 2000 notes, Governor Das explained that it was set to ensure the seriousness of the matter. However, he added that the apex bank would reassess the deadline based on the prevailing circumstances.
While the RBI has instructed banks to cease issuing Rs 2000 denomination banknotes with immediate effect, it clarified that individuals can still deposit or exchange these notes for other denominations at any bank branch until September 30, 2023.
The introduction of the Rs 2000 denomination banknote in November 2016 aimed to swiftly fulfill the economy’s currency requirements following the withdrawal of legal tender status for Rs 500 and Rs 1000 banknotes. Despite their withdrawal from circulation, the Rs 2000 notes will retain their legal value. The RBI Governor urges the public to avoid panic withdrawals and maintain confidence in the banking system.
