No Reason To Rush To Banks To Exchange Rs 2000 Notes: RBI Governor Shaktikanta Das

Days after announcing the withdrawal of Rs 2000 notes from circulation, RBI Governor Shaktikanta Das on Monday 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 RBI Governor said. 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.

Talking about the central bank's decision to withdraw the notes from circulation, Shaktikanta Das said, "Let me clarify and re-emphasise that it is a part of the currency management operations of the Reserve Bank...For a long time, the Reserve Bank has been following a clean note policy. From time to time, RBI withdraws notes of a particular series and issues fresh notes...We are withdrawing the Rs 2000 notes from circulation but they continue as legal tender,"

In a surprise move, the RBI on Friday announced the withdrawal of Rs 2,000 currency notes from circulation. Unlike the November 2016 shock of demonetisation, when old Rs 500 and Rs 1,000 notes were invalidated overnight, the Rs 2,000 notes will continue to be a legal tender.

The RBI Governor further stated, "We have clearly explained in our press note that the Rs 2000 notes were primarily issued for the purpose of quickly replenishing 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which was being taken out from the system when the legal tender status of then-prevailing Rs 1000 and Rs 500 notes was withdrawn.

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 facility of exchanging Rs 2000 banknotes begins across the country from Tuesday.