The Reserve Bank of India has no plans to reissue Rs 1000 banknotes to lessen the impact of the withdrawal of Rs 2000 bank notes, according to RBI governor Shaktikanta Das.
The withdrawal of the Rs. 2000 note has sparked conjecture about the potential return of the Rs. 1000 banknote. The RBI is asked how to deal with the effects of the removal of Rs 2000 notes. The Reserve Bank of India has no plans to reissue Rs 1000 banknotes to lessen the impact of the withdrawal of Rs 2000 bank notes, according to RBI governor Shaktikanta Das.
He referred to the reports on the topic as 'speculative,' adding, "That's speculative. There's no such proposal right now." After the massive demonetisation move by the government, in which all 500 and 1,000 rupee banknotes in circulation at the time lost their legal tender status, the 2,000 banknote was first introduced in November 2016 primarily to meet the currency needs of the economy "in an expeditious manner."
The action caused the overnight destruction of 10 lakh crore. "With that goal achieved and adequate supplies of banknotes in other denominations available, printing of Rs. 2000 banknotes was discontinued in 2018–19," the RBI stated.
Speaking to reporters for the first time since the unexpected move, Mr. Das also advised against returning or exchanging any 2,000 note holdings right now.
"There is no need to run to the banks right away. The deadline has been extended to September 30. According to the RBI Governor, this was done primarily so that people would take the deadline seriously and try to return the notes.
removal of Rs 2000 notes' effects on the economy.
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Impacts of Rs 2000 notes withdrawal on economy
According to him, the withdrawal will have a "very very marginal" effect on the economy and just 10,8% of all notes in circulation are in the form of the 2,000 note denomination. "Rs 2000 banknotes were introduced primarily to replenish the notes withdrawn following demonstration," the RBI governor continued.
The withheld 2,000 rupee notes can be deposited in bank accounts or exchanged for other currencies, but banks have been urged to make the required preparations for exchange, he said.
"We anticipate that by September 30 the majority of the 2,000 banknotes will return to the exchequer. We already have more than enough printed notes in the system, not just with the RBI but also with currency chests run by banks. There is no need to be concerned. We have sufficient stocks, no need to worry," the RBI Governor added.
According to him, RBI is aware of the challenges people face and will issue regulations if necessary.
(With inputs from PTI)
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