While addressing the media on Monday, Shaktikanta Das, the governor of the Reserve Bank of India (RBI) announced that the withdrawal of Rs 2000 banknotes will continue to be a legal lender. “We have clearly explained in our press note that the Rs 2000 notes were primarily issued to quickly replenish the value of money which was being taken out from the system when the legal tender status of then-prevailing Rs 1000 and Rs 500 notes was withdrawn,” RBI Governor.₹2000 Denomination Banknotes – Withdrawal from Circulation Will continue as Legal Tenderhttps://t.co/im8EBo42Wk— ReserveBankOfIndia (@RBI) May 22, 2023Adding to this, Das also mentioned, “That purpose has been fulfilled, today there are enough notes in circulation, of other denominations. Even the circulation of Rs 2000 notes as we have explained has come down from its peak of 6 lakh 73,000 crores to about 3 lakh 62,000 crores. The printing also has been stopped. The notes have completed their life cycle.”The deadline for the people has been given to make sure that the process ends. Leaving open-ended deadline for exchange will make it an endless process, he added.Das also clarified that the introduction to the high-value currency banknote was introduced for a short period to increase the liquidity in the economy. Meanwhile, he also added that people would be able to deposit or exchange Rs 2000 banknotes at any branch up to September 30, 2023.Notably, the denomination of the Rs 2000 banknote was introduced in November 2016, to meet the requirements of the economy and after the withdrawal of Rs 500 and Rs 1000 banknotes in circulation at that time.Launch of Rs 2000 note was a foolish move: P ChidambaramFormer finance minister, P Chidambaram, on Monday, said that introducing Rs 2000 note by the Central government was a foolish move and expressed that he is glad to know that it is been withdrawn. Taking it to Twitter, the former finance minister wrote, “Banks have clarified that no identity, no forms and no proof will be required to exchange the Rs 2000 notes. The BJPs spin that the Rs 2000 notes are being withdrawn to unearth black money stands demolished. Ordinary people do not have Rs 2000 notes. They shunned it soon after it was introduced in 2016. They were useless for daily retail exchange. So, who kept the Rs 2000 notes and used them You know the answer. The Rs 2000 note only helped keepers of black money to hoard their money with ease. The keepers of Rs 2000 notes are being welcomed on a red carpet to exchange their notes! So much for the governments declared objective of rooting out black money. The Rs 2000 note was a foolish move in 2016. I am glad that the foolish move is being withdrawn at least 7 years later.”Banks have clarified that no identity, no forms and no proof will be required to exchange the Rs 2000 notesThe BJPs spin that the Rs 2000 notes are being withdrawn to unearth black money stands demolishedOrdinary people do not have Rs 2000 notes. They shunned it soon after…— P. Chidambaram (@PChidambaram_IN) May 22, 2023However, the governor of RBI on Monday announced, in pursuance of the Clean Note Policy of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination bank notes from circulation.
