Indian banks exchange Rs 2,000 notes ahead of Demonetisation 2.0
₹2,000 notes to have legal tender status till September 30
The ₹2,000 notes will continue to have legal tender status, allowing people to use them to buy goods and services. ‘The deadline is to ensure that the people take the matter seriously,’ RBI governor Shaktikanta Das said.
Aim is to reduce high-value notes in circulation
RBI first stopped printing ₹2,000 notes in 2018-19 and then started reducing it from circulation. The reason, as stated by the RBI, is to reduce high-value notes in circulation.
Economic activity will not be impacted
RBI governor Das stated that as the large denomination notes were not used for day-to-day transactions, the possibility of economic activity being impacted is very low.
Withdrawal of currency note unlikely to cause any disruption
The withdrawal is unlikely to cause any big disruption, considering that notes of smaller quantities are available in sufficient amounts. Also, digital transactions and e-commerce has expanded significantly in the past few years.
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