20 May 2023, Bengaluru, India
The news is coming straight from the capital state of New Delhi that RBI has announced to withdraw ₹2000 denomination banknotes from circulation. In spite of the withdrawal these banknotes will face, they will still be legal tender.
The Reserve Bank Of India has asked the people to make sure they deposit these banknotes in their bank accounts. People can exchange these notes for banknotes of other denominations from any bank branch.
The RBI released a statement on this matter, stating that people can exchange their ₹2000 banknotes in any bank branch within a limit of ₹20000 at a time. This facility to exchange the banknotes will be available from May 23, per the RBI guidelines.
RBI has also released guidelines for banks to allow customers to exchange and/or deposit their ₹2000 banknotes until September 30, 2023. While the latest guideline is yet to go live, people must know there is no change in the deposit and exchange process. People can deposit without restrictions and are subject to extant instructions and other applicable statutory provisions.
Though the central bank’s notice has been a shock to everyone, it is reportedly one of the nation’s most heated debates right now. With RBI issuing the new guideline regarding the ₹2000 banknotes, they have made it clear that no bank should hand over any ₹2000 banknotes from now onwards.
While the decision is made to gradually pull out every ₹2000 banknote, it is absolutely appropriate to use the banknote for transactions and accept them as payment.
This decision has received multiple backlashes from various political parties calling this move ‘unexpected’ and a ‘waste.’
Congress veteran and former finance minister P Chidambaram said in a tweet, “As expected, the government/RBI have withdrawn the Rs 2000 note and given time until September 30 to exchange the notes. The Rs 2000 note is hardly a popular medium of exchange. We said this in November 2016 and we have been proved correct. The Rs 2000 note was a band-aid to cover up the foolish decision of demonetizing Rs 500 and Rs 1000 notes which were popular and widely exchanged currencies. A few weeks after Demonetisation, the government/RBI was forced to re-introduce the Rs 500 note. I shall not be surprised if the government/RBI re-introduced the Rs 1000 note as well. Demonetization has come full circle!”
While the decision of the central bank stands firm amid various criticism, several people find the decision in good omen. Former RBI deputy governor R Gandhi believes the withdrawal would only help in curbing the flow of black money.
Saurabh Bhardwaj, leader of the Aam Aadmi Party, expressed his concerns about the latest developments around the ₹2000 banknotes. His words were in respect of the decision made, but he was skeptical of the decision and questioned the introduction of the banknote in the first place.
RBI mentioned that the objective of issuing the ₹2000 banknotes had been met, and now it is time to bid farewell to pink-colored notes. This banknote was introduced to meet the currency requirement of the economy expeditiously after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time.
Now that other denominations have become available in adequate quantities, it is time to say goodbye to an old friend. The ₹2000 banknote issued before March 2017 has reached the threshold of a lifespan of only 4-5 years. The production of these notes was stopped way back in 2018-19. The total value of these banknotes in circulation has come down from ₹6.73 lakh crore at its peak to ₹3.62 lakh crore.
Source – Times of India
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