Swift return! Over two-thirds of Rs 2,000 notes returned within a month of withdrawal, says RBI Guv
More than two-thirds of the Rs 2,000 currency notes returned to the system within a month of the recall order, said Reserve Bank Governor Shaktikanta Das.
"As of mid-last week, more than two-thirds, or 2.41 lakh crore, of the 3.62 lakh crore (as of March 31, 2023) of the now-recalled 2000 banknotes had returned to the system," Governor Das told PTI Bhasha in an interview at the RBI headquarters.
According to him, up to 85% of the money that has returned to the system is in deposits, with the remainder in currency exchanges.
Despite the fact that the central bank has set September 30, 2023, as the final day for exchange/deposits, Das stated that the date is not carved in stone and that individuals should not rush to claim their money.
Das also stated that the note recall will have no effect on monetary stability, but declined to comment on a recent analyst report claiming that the move would lead to higher consumer spending, which has been under pressure for some time, and thus help prop up the economy and grow faster than the projected 6.5 percent.
"I don't see any negative impact of the note recall on the economy at all," Das added.
The central bank and the government expect GDP to be 6.5 percent this fiscal year, with Q1 at 8.1 percent and then dropping off in the following quarters.
Rs 2000 denomination banknote was introduced in November 2016 to meet the currency requirement of the economy in an expeditious manner following the withdrawal of all Rs 500 and Rs 1000 banknotes in circulation at that time.
When banknotes in other denominations became available in adequate quantities, the objective of launching Rs 2000 banknotes was met. As a result, the printing of Rs 2000 banknotes was halted in 2018-19.
The RBI decided to withdraw the Rs 2000 denomination banknotes from circulation on May 19, 2023 but stated that they will continue to be legal currency. The RBI, on the other hand, has advised banks to stop issuing such banknotes immediately.
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- With inputs from agencies
