Reserve Bank of India Governor Shaktikanta Das made an announcement that is bound to capture the nation’s attention. In a statement, he revealed that ₹2,000 denomination notes, which were previously on the brink of extinction, are making a comeback.
Read More: Mukesh Ambani’s Reliance to offer OnePlus’ most expensive phone ever at cheaper price
According to Das, only ₹10,000 crore worth of these notes remain in circulation. Furthermore, he expressed confidence that this remaining sum would also be returned or deposited back into the system.
A Bold Move: Phasing Out ₹2,000 Notes
The decision to reintroduce ₹2,000 notes follows a surprising move made by the Reserve Bank of India earlier this year. On May 19, the RBI declared its intention to phase out the ₹2,000 note, a currency denomination introduced in 2016 as part of a rapid remonetization effort. This move was initiated following Prime Minister Narendra Modi’s bold decision to withdraw over 88 percent of the currency in circulation by invalidating the ₹500 and ₹1,000 notes. Das explained that, at the time of the announcement, 87 percent of the ₹2,000 denomination notes that were in circulation had already been returned as deposits in banks, while the remainder had been exchanged across counters.
Now, as the process unfolds, there is an expectation that the remaining ₹10,000 crore will also find its way back into the system.
Recalling the Journey of the ₹2,000 Note and Its Current Status
It’s important to note that initially, the public and entities holding these notes were given the option to either exchange or deposit them in bank accounts by September 30, but the deadline was later extended to October 7. As of October 7, both deposit and exchange services at bank branches were discontinued, and starting October 8, individuals were offered the choice of either exchanging the currency or having the equivalent sum credited to their bank accounts at 19 Reserve Bank of India locations. Individuals and entities alike can exchange ₹2,000 banknotes at these offices, with a limit of ₹20,000 at a time, but there is no overall cap on the total amount that can be credited into bank accounts.
Read More: RBL Bank Launches GO Digital Savings Account
The reintroduction of ₹2,000 notes signifies a surprising twist in the currency’s journey and has piqued the interest of many. It remains to be seen how this development will affect the country’s financial landscape and the circulation of currency.
