RBI: In 15 days, 50% of Rs. 2,000 notes returned to the banking system
Virendra Pandit
New Delhi: Nearly half of the currency notes of Rs. 2,000 denominations have already returned to the banking system in the last 15 days, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday.
Speaking at a press conference after the announcement of the Monetary Policy Committee’s decisions, he said, “As of March 31 this year, Rs. 2,000 notes worth Rs. 3.62 trillion were in circulation. After the May 19 announcement, the banks started receiving back these notes on May 23. So far, about Rs 1.8 trillion (Rs. 1,80,000 crores) worth of Rs 2,000 notes have come back.”
Das added that 85 percent of these notes returned as bank deposits. The rest have been exchanged at various bank branches, the media reported.
Based on a review, the RBI had, on May 19, announced to withdraw Rs. 2,000 notes from circulation. However, these banknotes will continue to be legal tenders.
“In view of the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2,000 denomination banknotes from circulation,” the RBI said last month.
The central bank had also advised the people to deposit Rs. 2,000 banknotes in their bank accounts or exchange them for banknotes of other denominations at any bank branch.
The total value of Rs. 2,000 banknotes constituted only 10.8 percent of notes in circulation on March 31, 2023. About 89 percent of the Rs 2,000 denomination banknotes were issued before March 2017.
In the monetary policy announcement, Das said the MPC had unanimously announced to keep the repo rate unchanged at 6.5 percent. By a majority of 5-1, the MPC also decided to continue with its stance of “withdrawal of accommodation.”
