06 October,2023 04:41 PM IST | Mumbai | mid-day online correspondent
RBI Governor Shaktikanta Das/ PTI
Reserve Bank of India Governor Shaktikanta Das, on Friday, said that about Rs 12,000 crore of the Rs 2000 banknotes remain in circulation with just one day left for the public to avail exchange or deposit the notes at the banks.
According to a report in ANI, essentially, over 96 per cent of the total value of Rs 2000 banknotes are back in the banking system.
Das told media persons that so far, they have got back about Rs 3.43 lakh crore. He was quoted in the report as saying, "We have announced the withdrawal of Rs 2,000 notes. So far, we have got back about 3.43 lakh crore and only about 12,000 crore or so are left. Of course, 87 per cent of it has come as bank deposits, and the rest is an exchange of cash with other denominations over the counter."
He made the statement after the monetary policy review meeting while responding to a query on the status of liquidity in the system.
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At the close of business on May 19, the day on which RBI decided on the withdrawal of Rs 2000 banknote, the total value in circulation was Rs 3.56 lakh crore, the report added. It further stated that the total value of banknotes returned to the system after the announcement is to the tune of Rs 3.44 lakh crore.
The RBI had initially decided September 30 would be the last day for the completion of the exchange and deposit exercise. People were alerted to utilise the month of September to deposit or exchange their Rs 2000 banknotes to avoid last-moment rushing. However, following a review, on September 30, the RBI extended the arrangement till October 7.
"With effect from October 8, 2023, banks shall stop accepting Rs 2000 banknotes for credit to accounts or exchange to other denomination banknotes," RBI said.
While the exchange or deposit exercise at banks, individuals or entities can continue to exchange it at the 19 RBI Issue Offices up to a limit of Rs 20,000 at a time. They can also tender Rs 2000 banknotes for credit to their bank accounts for any amount. One can send Rs 2000 banknotes within the country to RBI Issue Offices through India Post for credit to their bank accounts.
The central bank has reiterated that Rs 2000 banknotes will continue to be legal tender.
The primary reason for the banknote's introduction in November 2016 was to meet the currency requirement of the economy following demonetization. The objective was met after banknotes in other denominations were adequately available. Subsequently, printing of Rs 2000 banknotes stopped in 2018-19.
