Don't rush to exchange Rs. 2,000 notes: RBI governor
Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday there was no need to panic over the withdrawal of Rs. 2,000 notes. He said banks will make necessary arrangements for the exchange of the notes, and the RBI will take care of the difficulties that people face. Notably, people can exchange notes up to the value of Rs. 20,000 at a time.
Why does this story matter?
The RBI governor's assurance comes amid collective anxiety over the fate of the Rs. 2,000 notes that have been called back. People across the country reportedly queued at banks and filling stations to get the notes exchanged, fearing a reprise of the 2016 demonetization. Allegedly, apart from failed promises of checking counterfeit currency and terrorism, the move caused India's real GDP to plummet significantly.
Routine practice, similar exercise undertaken in 2013-14: Das
Don't rush to banks: Das
Das said there is no need for the general public to rush to the banks, and the notes will continue to remain legal tender. He added that the September 30 deadline had been specified to lend weight to the announcement.
Rs. 2,000 notes introduced to replenish money taken out
Das said the withdrawal of the said denomination is part of currency management. He expected most notes to come back to the exchequer by September 30. He stressed that Rs. 2,000 notes were introduced primarily to quickly replenish the value of money taken out of the system during the 2016 demonetization of the old Rs. 500 and Rs. 1,000 notes.
Purpose of Rs. 2,000 notes fulfilled: Das
Das clarified the security features of the new high-value Mahatma Gandhi series of banknotes hadn't been compromised. He said the decision to withdraw the notes was taken as notes of other denominations were in circulation in adequate quantity, and the purpose of Rs. 2,000 banknotes had been fulfilled. India's currency exchange rates are stable compared to peers despite the global financial crisis, he added.
