Withdrawal of Rs 2000 notes – No need to rush for exchange, says RBI Governor

RBI Governor Shaktikanta Das said that Rs 2000 currency notes have been withdrawn with specific objectives. Rs 2,000 was introduced with the primary purpose of quickly restoring the value of Rs 500 and Rs 1000 currency notes taken out of the system via demonetization.

He stated that the decision to withdraw Rs 2000 currency notes is part of the currency management operation of Reserve Bank of India. The RBI will see how much of these notes come back to banks, and then decide on possible extension of the September 30 deadline. He also said that the people need not rush to banks to exchange the notes as they have four months of time.

Rs 2000 notes would continue to be legal. “The withdrawal of 2,000-rupee notes will have a very marginal impact on the economy. 2,000 notes were hardly used, so economic activity will not be impacted”. “There are more than enough notes of smaller denomination in circulation”, stated RBI Governor.