The Reserve Bank of India (RBI) on August 1 mentioned Rs 3.14 lakh crore value of Rs 2,000 banknotes, or 88% out there to be used, have returned to the monetary framework as on July 31. Thus, Rs 2,000 banknotes out there to be used as on the finish of enterprise on July 31 stayed at Rs 0.42 lakh crore, the discharge mentioned. According to the discharge, 13% of the entire notes returned from circulation have been transformed into different denominations, whereas 87 p.c of the notes have been used as deposits.
“Reserve Bank of India (RBI) had announced the withdrawal of Rs 2000 banknotes from circulation. The total value of Rs 2000 banknotes in circulation, which amounted to Rs 3.62 lakh crore on March 31, 2023 had declined to Rs 3.56 lakh crore as at the close of business on May 19, 2023. According to the data received from the banks, the total value of Rs 2000 banknotes received back from circulation is Rs 3.14 lakh crore up to July 31, 2023. Consequently, Rs 2000 banknotes in circulation as at the close of business on July 31 stood at Rs 0.42 lakh crore. Thus, 88% of the Rs 2000 banknotes in circulation as on May 19, 2023, have since been returned,” mentioned RBI.
The central financial institution requested individuals on the whole to use the leftover time span to commerce or retailer Rs 2,000 notes. On May 19, the financial institution declared the withdrawal of Rs 2,000 cash payments from circulation. “Considering the abovementioned, and in compatibility of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been chosen to pull out the Rs 2,000 denomination banknotes from dissemination,” the RBI mentioned on May 19.
On the opposite hand, on May 24, the Governor of the RBI said that the central financial institution had made the choice to cease issuing Rs 2,000 forex notes as a result of this denomination was not extensively used and high-denomination notes may trigger collateral issues. He said, “In our surveys, we found out that Rs 2,000 notes were not used at all… It was used, but not frequently.”
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