Sept 30 deadline for Rs 2000-notes exchange for people to take it seriously: RBI Governor

Mumbai (Maharashtra) [India], May 22 (ANI): Reserve Bank of India Governor Shaktikanta Das said the deadline of September 30 for the exchange of Rs 2000 notes was decided so that people take the process seriously and it does not become endless.

“…Time is given up to Sept 30 (for exchange of notes) so that it is taken seriously, otherwise, if you leave it open-ended, it becomes a kind of an endless process,” Shaktikanta Das said in an interaction with the media.

“We have clearly explained in our press note that the Rs 2000 notes were primarily issued for the purpose of quickly replenishing the value of money which was being taken out from the system when the legal tender status of then-prevailing Rs 1000 and Rs 500 notes was withdrawn..(demonetisation). That purpose has been fulfilled, today there are enough notes in circulation, of other denominations.”

He said the move was part of the currency management operations of the Reserve Bank.

“Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank…For a long time, the Reserve Bank has been following a clean note policy. 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,” he said.

The Reserve Bank of India on Friday decided to withdraw the Rs 2000 denomination banknotes from circulation but said they would continue to remain as legal tender.

It advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect.

RBI said that citizens would continue to be able to deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch up to September 30, 2023.