The Reserve Bank of India (RBI) Governor, Shaktikanta Das addressed the public today (22nd May 2023) after the implementation of ‘Clean note policy’ on the Rs. 2000 denomination bank notes. The governor has stated that the withdrawal of the Rs. 2000 notes was a part of the currency management operations of the Reserve Bank of India.
The governor stated that the Reserve Bank of India expected that maximum notes would come back within September 30, 2023 and the printing of Rs. 2000 bank notes had completely stopped. Also, there is no doubt that it will continue as the legal tender.
The security features of the Rs. 2000 notes/high value note has not breached till now. All the fake notes are just the copy, states the governor. In addition, more than adequate other notes have been printed.
The Governor advised citizens not to panic and also don’t rush to the bank. There is enough time to exchange or deposit the withdrawal notes. Further stated he cannot speak about after september 30 as it is speculative. Also, the concerns and representation of the people living in foreign countries’ or went for trips will be considered.
The Rs. 2000 notes are hardly used in the transactions as per the survey conducted informally by the RBI. Thus, the economic activity will not get impacted, informs the Governor. Since the intended outcome was achieved, the Reserve Bank of India removed the Rs. 2000 denomination money from the circulation.
The banks were instructed to make special and necessary arrangements for the people to exchange the notes within the stipulated time. The complaints and grievances redressal will be properly addressed and will be monitored. The Reserve Bank of India Act, 1934 empowers the RBI in the role of currency management.
Subsequent to the withdrawal, the RBI has also issued the Frequently asked questions for clarifying doubts.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
