RBI ends speculation on withdrawing ₹500 notes or re-introducing ₹1,000 notes

RBI announces about Rs 500 notes and Rs 1000 notes. Photo Credit: Google

India: The Reserve Bank of India governor Shaktikanta Das has put a full stop to all the speculations regarding 500 rupee notes as well as the 1000 rupee notes. He has clearly announced that there is no intention to ban rupees 500 note or to re-introduce the rupees 1000 note. Not many days ago, the central bank had anounced that the Rs 2000 notes should be deposited or exchange at the banks. As per reports, majority of the people have preferred to deposit their Rs 2000 notes rather than exchangeing them.

RBI on withdrawing ₹500 notes, or re-introducing ₹1,000 notes

Since the Rs 2000 note deposit news there were several speculations regarding denomination notes of rupees 500 and rupees 1000. In an official statement, Das said “At the moment, RBI is not thinking of withdrawing ₹500 notes, or re-introducing notes in ₹1,000 denomination”. He then requested the public not to speculate or spread misinformation. Moreover, he informed that rupees 1.80 lakh crore of Rs 2000 notes have been collected till now. Those who have still not deposited the notes should not rush at the last moment he said.

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Can Rs 2000 notes be used after September 30?

In a recent statement, he said that there is no need to rush and that the public should go to the banks to deposit or exchange rupees 2000 notes at their convenience. However, “please do not rush in at the last moment, which is last 10 to 15 days of September” he said. Now the question rises that “what will happen with the Rs 2000 note after September 30”. RBI hasreplied to this question and said that we notes will remainte legal tender even after September 30, 2023. There will be no restrictions in the use of the Rs 2000 note. Individuals can continue to use them for normal daily day transactions. It will be without a doubt accepted as payment.

Four months of time has been given to the public for the exchange or deposit of the Rs 2000 note. RBI believe that this much time is enough for regular circulating money to reach the banks. In another report, at the MPC meeting that took place recently, the RBI has announced that it will continue to keep the repo rate at 6.5%.