The Reserve Bank of India (RBI) on Friday announced on Friday that ₹2,000 notes are being withdrawn from circulation, while also stating that they will continue to remain legal tender.
As expected, this led to a lot of confusion and fear with some comparing this to the 2016 demonetisation when ₹500, ₹1,000 notes were banned after an unanticipated announcement by the Prime Minister Narendra Modi.
Consequently, RBI Governor Shaktikanta Das tried to allay the fears of depositors and said, “From time to time, RBI withdraws notes of a particular series and issues fresh notes... We are withdrawing ₹2000 notes from circulation but they will continue as legal tender. It is a part of the RBI's currency management operations.”
While speaking about the foreigners living abroad, he said, “People who are in foreign countries, we would be sensitive to the difficulties that you are facing. There is nothing to worry about. If there are other representations, then we would study them, and assure that there are no concerns.”
It is worth mentioning that those who have large reserves of ₹2,000 notes can either exchange them for currency of smaller duration, or can deposit them in the bank.
For exchange of notes, the maximum limit is ₹20,000 for one time and for depositing money, there is no limit.
Another rumour that was doing the rounds that depositors need to fill a requisition slip with all the details.
The State Bank of India (SBI) made a clarification recently saying that no such formalities such as proof of identity or requisition slip are needed.
So, those who are worried that their notes will lose legal status after Sep 30 need not worry.
The notes will continue to remain valid, however, the RBI’s official statement does not explicitly say this.
“Sep 30 has been specified so that this announcement is taken seriously. If it’s kept open-ended, then nobody would take it seriously,” says Shaktikanta Das.