Allaying fears over the decision to withdraw Rs 2,000 currency notes, Reserve Bank of India (RBI) Governor Shaktikanta Das said the impact of the move on the Indian economy will be 'very very minimal'. Das said that no one should rush to exchange or return their Rs 2,000 notes and added that the currency notes will continue to be legal tender.
In a surprise announcement on Friday, RBI announced the withdrawal of the highest denomination of currency note which should be returned by the deadline of September 30. While the withdrawn 2,000 rupee notes can either be deposited in bank accounts or exchange for other currency, banks have been advised to make necessary arrangements for exchange, he said.
"We expect most of Rs 2,000 bank notes to come back to the exchequer by September 30. "We have more than adequate quantities of printed notes already available in the system, not just with RBI but with currency chests operated by banks. There is no reason for worry. We have sufficient stocks, no need to worry," Das said.
Das further added that the Indian currency management system is very robust and exchange rate has remained stable despite crisis in financial markets due to war in Ukraine and failure of certain banks in the West.
The State Back of India clarified on Sunday that the exchange of notes, which will begin on May 23, will be allowed without any requisition slip or identity proof.
-with agency inputs