RBI Governor Says Rs 2000 Notes Will Continue To Be Legal Tender And Urges Public Not To Rush To Banks

The Reserve Bank of India (RBI) Governor, Shaktikanta Das on Monday has addressed concerns and clarified that the Rs 2000 notes will continue to hold their legal tender status, despite the recent announcement of their withdrawal from circulation.

He also stated that he did not anticipate a rush at the branches and asked people not to rush to banks.

The Governor stated that the Rs 2000 note was produced primarily to refill money that had been removed from the system after the demonetisation of Rs 500 and Rs 1,000 notes, ANI reported.

Shaktikanta Das told reporters today that the greater currency value was created in a short period of time to generate liquidity in the economy. He further mentioned that the circulation of Rs 2000 notes has gone below 50% since then..

When asked about the September 30 deadline for the exchange of Rs 2000 notes, the governor of the apex bank explained that the deadline was set to ensure its seriousness. However, the governor also mentioned that the deadline would be re-evaluated based on the prevailing situation.

The Reserve Bank of India pulled Rs 2000 banknotes from circulation on Friday, but they will continue to be legal tender. It directed banks to stop issuing Rs 2000 banknotes immediately.

Meanwhile, the Reserve Bank of India (RBI) said that until September 30, 2023, individuals will be able to deposit Rs 2000 banknotes into their bank accounts and/or exchange them at any bank branch.

The Rs 2000 denomination banknote was released in November 2016, primarily to address the economy's cash needs immediately after all Rs 500 and Rs 1000 banknotes in circulation at the time lost their legal tender status.