No proposal under consideration to extend date for exchange/deposit ₹2,000 note, says Govt
The center has clarified that there is no proposal under consideration to extend the exchange date of the Rs 2,000 notes beyond September 30. He also said he has no plans yet to demonetize the highly valued currency.
“For the time being, this matter is not under consideration,” said the Minister of State for Finance, Pankaj Chaudhary, in a written response when asked if the government intends to extend the deadline for the exchange of 2,000 rupee notes in banks beyond September 30. On May 19, the Reserve Bank of India issued I announce the withdrawal of a note of Rs 2,000 from circulation, although it will still be legal tender. It has allowed people to deposit or exchange notes at a bank until September 30. While there is a limit of Rs 20,000 at a time for exchange, there is no deposit limit.
Since 2014, this is the second case of currency withdrawals in the system except for one case of a trade being cancelled. In the earlier case of withdrawal, the Reserve Bank of India (RBI) announced the complete withdrawal from circulation of all banknotes issued before 2005 after 31st March 2014. From 1st April 2014, the public was given an opportunity to exchange these banknotes. It has been clarified that these banknotes will remain legal tender.
Also read: What is really behind recalling notes worth Rs 2,000?
A note on trading
Earlier this month, the Reserve Bank of India (RBI) said that as per data from banks, the total value of ₹2,000 notes received back from circulation after the announcement on May 19 was Rs.2.72 crore as of June 30, 2023. Thus, the $2,000 notes in circulation at the end of business on June 30 amounted to Rs.0.84 crore. thus, 76 per cent of the 2,000 rupee notes In circulation, as on May 19, it has since been returned.
Data collected from major banks indicates that of the total banknotes in the ₹2,000 denomination that were received back from circulation, about 87 per cent were in the form of deposits and the remaining 13 per cent were redeemed in other banknotes. The central bank advised people to avoid any rush in the last few days before September 30th.
Also read: 2,000 banknotes have now been withdrawn. How is this different from de-trading in 2016?
There are no demonic plans
Chaudhary also said there is no plan to demonetize other high-denomination banknotes to get rid of black money. According to the Reserve Bank of India, the withdrawal was a planned currency management operation to avoid any inconvenience to the public or any disruption to the economy. Furthermore, a withdrawal of $2,000 in banknotes has been taken into consideration, per current year requirements and sufficient reserve stocks of banknotes in other denominations are being maintained across the country to meet the exchange/withdrawal requirements.”
The Minister also informed that, according to the RBI, coins in denominations of 10 and 20 euros are available either in banknotes or coins. In regards to the 50 Euro note, there is a sufficient quantity of banknotes available for public use. Hence, “there is no shortage of currency,” he said.