November 2016 – The Central Government withdrew Rs. 500 and 1000 notes issued till the previous day. Instead, newly minted Rs 500 and Rs 2000 notes were widely distributed.
The Reserve Bank of India has decided to withdraw Rs 2000 notes. The RBI said that 89 percent of the currently available Rs 2,000 notes were printed before March 2017 and the notes’ maturity of 4-5 years has been completed. The withdrawal is interpreted as part of a ‘clean note’ policy.
Prior to this, the RBI has issued a directive to stop the printing and distribution of Rs 2000 notes. Banks have been instructed not to issue Rs 2000 notes. At the same time, the Reserve Bank has stated in a press release that the notes currently in use will be valid till September 30.
In the financial year ending March 2018, there were 33632 lakh notes in the market. 32,910 lakhs in 2019. The Reserve Bank had earlier stated that it will decrease to 27,398 lakhs in 2021. Not even a single note of Rs 2000 was printed in the financial year 2019-20.
Could demonetisation be a cerebral pain for India? What are the ramifications this time?
The decision to demonetize Rs 2000 notes is clearly not going to have an immediate impact on citizens, according to financial experts. because they will have ample time to alter themselves. Market examiners accept that this choice won’t influence the economy and the market this time because of the quick digitization in the country.
It is accepted that the move won’t influence the market and the economy as the dissemination of the money is as of now low. The country’s digital payment system is also very strong today. A group of specialists likewise brings up that this is a decent move. This move will eventually lessen dark cash and assist with further developing expense assortment. As a result, the markets will benefit from this development.
The market anticipates that banks’ deposit accumulation will slightly improve in the near future, as was the case during demonetisation. The upward pressure on investment rates will be lessened by this. These are the assurances provided by the RBI. According to the RBI, the general public will be able to exchange the Rs 2,000 notes for currency notes of different denominations at any bank branch or deposit them into their bank accounts.
Stores to ledgers can be made in ordinary way, without limitations, likely to existing directions and other material lawful arrangements. To guarantee functional comfort and not disturb normal tasks of bank offices, Rs 2,000 notes will be changed over into bank notes of different sections up to Rs 20,000 all at once in any bank from May 23.
There is no specific deposit limit for Rs 2,000 single-convertible notes, although the operational limit is Rs 20,000 in accordance with KYC standards and other statutory or regulatory requirements
Deposits can be made into bank accounts without restrictions as per KYC norms and other applicable statutory/regulatory requirements. An account holder can exchange Rs 2,000 notes through business correspondents up to a limit of Rs 4,000 per day. RBI has informed banks to approach bank branches or ROs of bank branches or ROs of RBI for exchange of Rs 2000 notes from 23 May 2023.
