'Rs 2,000 Notes Continue As Legal Tender, No Need To Worry': RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das on Monday said the RBI is withdrawing Rs 2,000 notes from circulation but they continue as legal tender. He said there was no need to panic or worry. The governor also said the purpose for which Rs 2,000 notes were started has been fulfilled and there are enough other notes in circulation.

Speaking to reporters for the first time since the surprise decision to withdraw the highest denomination currency note was announced, Das said the Rs 2,000 notes continue as legal tender and the September 30 deadline has been fixed so that people take the process seriously.

He also said Rs 2,000 notes have completed their cycle and age, and their withdrawal is part of the currency management operation. The Rs 2,000 banknotes were introduced primarily to replenish the notes withdrawn following demonetisation in 2016, the RBI governor said.

The impact of the withdrawal on the economy will be “very very marginal”, he said, adding Rs 2,000 currency notes made up for just 10.8 per cent of the total currency in circulation. “Liquidity in the system is being monitored on a daily basis.”

“We expect most of Rs 2,000 bank notes to come back to exchequer by September 30… and banks have been advised to make necessary arrangements for exchange of Rs 2,000 bank notes.”

The exchange of Rs 2,000 at banks will start on May 23, Tuesday. SBI has said that there is no need for any ID or requisition slip for deposits up to Rs 20,000 at a time.

Das said the RBI will be sensitive to difficulties faced by people regarding the exchange of Rs 2,000 bank notes.

The RBI governor also said the existing income tax requirement of PAN for Rs 50,000 or more deposits in bank accounts will apply on Rs 2,000 notes as well.

In its latest circular on May 22, the RBI also advised banks that the facility of exchange of Rs 2,000 banknotes across the counter shall be provided to the public in the usual manner, that is, as was being provided earlier.

“Banks are advised to provide appropriate infrastructure at the branches such as shaded waiting space, drinking water facilities, etc. considering the summer season,” the central bank said.

RBI has set a deadline of September 30 for the deposit or exchange of Rs 2,000 notes at banks.