scorecardresearchWithdrawal of ₹2,000 notes will not be disruptive, says RBI Governor

Withdrawal of 2,000 notes will not be disruptive, says RBI Governor

Updated: 25 May 2023, 12:37 PM IST
TL;DR.

As on March 31, 2023, the share of 2,000 notes in total value was a little over 10 per cent.

The notes had completed the lifecycle and the purpose has been fulfilled, RBI Governor Shaktikanta Das said

The notes had completed the lifecycle and the purpose has been fulfilled, RBI Governor Shaktikanta Das said

Reserve Bank of India (RBI) Governor Shaktikanta Das said the withdrawal of 2,000 note will not be disruptive and that business activities are quite normal, reported Business Line.

“The entire process will be non­disruptive. We have made our analysis about that,” Das said while responding to a question during the plenary session of the CII annual session.

As on March 31, 2023, the share of 2,000 notes in total value was a little over 10 per cent.

Das assured India Inc that the central bank is monitoring the overall borrowing. “Yesterday (Tuesday) there was no crowd anywhere. And we are monitoring the situation regularly. I don’t think there is any concern or any major issue which is coming out. Business activities are going on,” he said.

Justifying the deadline of September 30 — until when people are allowed to exchange their 2,000 notes — he said unless there is a timeline in any process, it’s not effective.

The notes had completed the lifecycle and the purpose has been fulfilled, he said. “It’s (the notes) not being used in transactions. Any high denomination currency... just remaining here and there... has other collateral issues,” said Das while emphasising that these notes were used for quick replacement of currencies whose legal tender status was withdrawn in 2016.

 

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The portion of total deposits which the banks must keep with the RBI as liquid cash is known as cash reserve ratio. 
First Published: 25 May 2023, 12:37 PM IST