No Proposal To Reintroduce 1,000 Rupee Note: RBI Governor

The Reserve Bank of India (RBI) on Monday dismissed claims of the reintroduction of 1,000 rupee notes and said there is no proposal to bring back such currency notes, yet.

The statement comes amid speculations that the government may re-introduce Rs 1,000 notes.

"That's speculative. There's no such proposal right now," RBI governor Shaktikanta Das said when asked whether there is a possibility of reintroducing Rs 1,000 notes.

RBI Governor Shaktikanta Das has said that there was no need to rush to the banks to exchange the notes.

"There is no reason to rush to banks now. You have four months, till September 30. The deadline has been given so that it is taken seriously by people. Otherwise, if you leave it open-ended, it become kind of an endless process," he stated.

Last week, the central bank announced its decision to withdraw the Rs 2,000 denomination banknotes from circulation as part of its 'Clean Note Policy'.

Rs 2,000 banknotes were initially introduced in November 2016 to address the urgent currency requirements of the economy following the withdrawal of the legal tender status of Rs 500 and Rs 1,000 banknotes. However, with an ample supply of banknotes in other denominations now available, the purpose of introducing the Rs 2000 banknotes has been fulfilled, leading to the cessation of their printing in 2018-19, the RBI said in a statement.

"Approximately 89 per cent of the Rs 2000 banknotes were issued prior to March 2017 and are nearing the end of their estimated lifespan of 4-5 years. The total value of these banknotes in circulation has significantly decreased from its peak of Rs 6.73 lakh crore as of March 31, 2018 (constituting 37.3 per cent of the total Notes in Circulation) to Rs 3.62 lakh crore, representing only 10.8 per cent of the total Notes in Circulation as of March 31, 2023," it added.

Considering these factors, the RBI has made the decision to withdraw the Rs 2000 denomination banknotes from circulation, while reaffirming their continued acceptance as legal tender.

The central bank said that this withdrawal follows a similar measure undertaken by the RBI in 2013-2014.