Withdrawal of Rs 2,000 notes part of currency management, impact to be ‘marginal’: RBI Governor Shaktikanta Das

Pointing out that there is enough supply of lower-denomination notes for exchange purposes even after the withdrawal of Rs 2,000 notes, Shaktikanta Das underlined that there is no reason to rush to banks.

#ExpressBiz | RBI Governor Shaktikanta Das said the withdrawal will have a "marginal impact" on the economy. (File image)

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Stating that the withdrawal of Rs 2,000 denomination banknotes is part of currency management, Reserve Bank of India (RBI) Governor Shaktikanta Das said they expect most of the notes to return to the banking system. Das said the withdrawal will have a “marginal impact” on the economy.

The RBI governor added that there is enough supply of lower-denomination notes for exchange purposes even after the withdrawal of Rs 2,000 notes. “We have more than adequate quantity of notes available, already printed, in the system. Not just with the RBI but also with currency chests with the banks,” he said.

When asked if the Rs 1,000 note will be re-introduced, he said there is no such proposal as of now. He underlined that the Rs 2,000 note will continue to be legal tender and with people having a four-month window to deposit the notes, there is no reason to rush to banks immediately.

Explained | Why has the RBI withdrawn Rs 2,000 notes?

Das pointed out that the September 30 deadline has been announced so that people take it seriously. “If we keep it open-ended, it may not be taken seriously… This is part of RBI’s currency management operations.”

The RBI on Friday announced the withdrawal of Rs 2,000 banknotes, with a September 30 deadline for people to deposit and exchange these notes.

The RBI governor said existing rules for cash-to-cash exchange transactions or cash deposits will continue to remain as it is. “These 2,000 notes were primarily issued to quickly replenish the system (after demonetisation), that purpose has been met,” he said.

“RBI will be sensitive to the requirements and adequacies of people, there may be people outside India who may require time to exchange, we will look into all the issues and resolve them,” Das added.

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Also Read | Withdrawing Rs 2,000 note: Testing time ahead for banks

On the security features of the notes, the governor said none of them has been breached in the “new Mahatma Gandhi series notes”.

Aanchal Magazine

Aanchal Magazine is a Senior Assistant Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With over 13 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience. Expertise & Focus Areas: Magazine’s reporting is rooted in "fiscal arithmetic" and economic science. Her work provides critical insights into the financial health of the nation, focusing on: Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions. Fiscal Metrics: Analysis of taxation, revenue collection, and government spending. Labour & Society: Reporting on labour trends and the intersection of economic policy with employment. Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy. Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region's culture and traditions and works to map the complex journeys of displacement associated with it. Find all stories by Aanchal Magazine here ... Read More