Are Rs 1,000 Notes Coming Again? RBI Governor’s Reply

The impression of the withdrawal of Rs 2,000 notes on the financial system can be “very very marginal”, he mentioned.

New Delhi:

The Reserve Financial institution of India (RBI) doesn’t have a plan to reintroduce Rs 1,000 financial institution notes to ease the impression following the withdrawal of Rs 2,000 notes, RBI governor Shaktikanta Das mentioned immediately, calling experiences on the topic “speculative”.

“That is speculative. There isn’t any such proposal proper now,”  Mr Das mentioned when requested whether or not there’s a risk of reintroducing Rs 1,000 notes.

The ₹ 2,000 banknote was launched in November 2016 primarily to fulfill the foreign money requirement of the financial system “in an expeditious method” after the massive demonetisation train, by which the authorized tender standing of all ₹ 500 and ₹ 1,000 banknotes in circulation at the moment was withdrawn, the Reserve Financial institution of India has mentioned. Rs 10 lakh crore was worn out of circulation in a single day due to the transfer.

“With fulfilment of that goal and availability of banknotes in different denominations in sufficient portions, printing of ₹ 2000 banknotes was stopped in 2018-19,” RBI mentioned.

Talking to reporters for the primary time for the reason that shock resolution, Mr Das additionally mentioned that nobody ought to rush to return or trade their ₹ 2,000 notes.

“There is no such thing as a motive to hurry to banks now. You may have 4 months, until September 30,” the RBI Governor mentioned, including that the deadline had been given primarily so individuals would take it significantly and make an effort to return the notes.

The impression of the withdrawal on the financial system can be “very very marginal”, he mentioned, including Rs 2,000 notes made up for simply 10.8 per cent of the whole foreign money in circulation.

“Rs 2000 financial institution notes have been launched primarily to replenish the notes withdrawn following demonstration,” the RBI chief added.

Eighty-nine per cent of the ₹ 2,000 notes have been issued earlier than March 2017 and they’re on the finish of their estimated life span of 4 to 5 years, in line with the central financial institution.

“The whole worth of those banknotes in circulation has declined from ₹ 6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to ₹ 3.62 lakh crore constituting solely 10.8% of Notes in Circulation on March 31, 2023,” RBI mentioned.