Reserve Bank of India (RBI) governor Shaktikanta Das on Monday urged customers to not rush to banks as they have a time of 4 months till September 30 to exchange their Rs 2,000 notes or transfer the amount to your bank account. He added that non-resident Indians (NRIs) including H-1B visa holders won’t face any issues regarding the same. He also explained that even though a withdrawal of Rs 2,000 notes has been ordered, these notes continue to be a legal tender. Das further noted that shops must not refuse accepting these notes. He said: "From time to time, RBI withdraws notes of a particular series and issues fresh notes...We are withdrawing the Rs 2000 notes from circulation but they continue as legal tender".
Das added that almost all Rs 2,000 notes will come back to the government by September 30. He also urged banks to not issue soiled or torn notes to customers while adding banks have been advised to make necessary arrangements in keeping with the extremely hot weather. When asked why the withdrawal of Rs 2,000 notes was ordered, the RBI boss said the notes completed their life cycle. Das further noted that the notes were printed 4-5 years back and its purpose also got over.
Das explained that the Rs 2,000 notes were primarily issued to replenish the currency after the 2016 demonetisation when Rs 500 and Rs 1000 notes were withdrawn as legal tenders. He further explained that enough notes of other denominations are in circulation at present while adding the printing of these notes has been completely stopped. He said: “That purpose has been fulfilled; today there are enough notes in circulation, of other denominations. Even the circulation of Rs 2000 notes as we have explained has come down from its peak of 6 lakh 73,000 crores to about 3 lakh 62,000 crores”.
He also explained the Rs 20,000 withdrawal limit and said that this is for the convenience of the banks’ operations while emphasizing that there are enough notes printed with not only the RBI but also the currency chests. He added these notes were not very commonly used in transactions and thus, the economic activity will not be impacted