<p>India's central bank recently announced that ₹2,000 currency notes will be sent out of circulation. While they will continue to be legal tender even after the cutoff date of September 30, 2023, people are encouraged to either deposit or exchange these notes.</p>

<p>The ₹2,000 notes form the largest currency denomination in India. As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes.&nbsp;</p>

<p>Once this proportion of the currency is out of use, ₹500 will be the largest currency denomination in India. On Monday, the Reserve Bank of India governor was asked if there was any consideration to bring back the ₹1000 currency notes.</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/business-economy/what-rbi-will-do-with-your-out-of-use-rs2000-currency-note-595116">What will RBI do with your out-of-use ₹2,000 currency notes?</a></strong></p>

<p>The governor revealed that the Reserve Bank of India does not&nbsp;plan to reintroduce ₹1,000 banknotes to ease the impact following the withdrawal of ₹ 2,000 notes.&nbsp;</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/indians-might-rush-to-buy-gold-and-real-estate-after-2000-note-withdrawal-will-help-boost-economy-595175">Indians rush to jewellery stores, petrol pumps after 2,000 note withdrawal</a></strong></p>

<p>Das called reports on the subject "speculative".</p>

<p>"That's speculative. There's no such proposal right now," Das said when asked whether there is a possibility of reintroducing ₹ 1,000 notes.</p>

<h2><strong>No need to rush to banks: India's central bank chief</strong></h2>

<p>Speaking to journalists for the first time since the move, Das also said that no one should rush to banks to return or exchange their ₹2,000 notes.</p>

<p>"There is no reason to rush to banks now. You have four months, till September 30," the RBI Governor said. He added that the deadline was given so that people take the matter seriously.</p>

<h2><b>How will it affect the Indian economy?</b></h2>

<p>The impact of the withdrawal on the economy will be "very, very marginal", the RBI governor said, adding ₹2,000 notes made up for just 10.8 per cent of the total currency in circulation.</p>

<p>"₹2000 banknotes were introduced primarily to replenish the notes withdrawn following demonstration," the RBI chief added.</p>

<p><strong>ALSO WATCH |&nbsp;Reserve Bank of India: 'Clean money policy' reason for withdrawal</strong></p>

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<p>Eighty-nine per cent of the ₹2,000 notes were issued before March 2017. They are said to be at the end of their estimated life span of four to five years.</p>

<p>"The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to ₹3.62 lakh crore, constituting only 10.8 per cent of notes in circulation on March 31, 2023," RBI said.</p>

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India's central bank recently announced that ₹2,000 currency notes will be sent out of circulation. While they will continue to be legal tender even after the cutoff date of September 30, 2023, people are encouraged to either deposit or exchange these notes.

India's central bank recently announced that ₹2,000 currency notes will be sent out of circulation. While they will continue to be legal tender even after the cutoff date of September 30, 2023, people are encouraged to either deposit or exchange these notes. The ₹2,000 notes form the largest currency denomination in India. As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes. Once this proportion of the currency is out of use, ₹500 will be the largest currency denomination in India. On Monday, the Reserve Bank of India governor was asked if there was any consideration to bring back the ₹1000 currency notes. ALSO READ | What will RBI do with your out-of-use ₹2,000 currency notes? The governor revealed that the Reserve Bank of India does not plan to reintroduce ₹1,000 banknotes to ease the impact following the withdrawal of ₹ 2,000 notes. ALSO READ | Indians rush to jewellery stores, petrol pumps after 2,000 note withdrawal Das called reports on the subject "speculative". "That's speculative. There's no such proposal right now," Das said when asked whether there is a possibility of reintroducing ₹ 1,000 notes. No need to rush to banks: India's central bank chief Speaking to journalists for the first time since the move, Das also said that no one should rush to banks to return or exchange their ₹2,000 notes. "There is no reason to rush to banks now. You have four months, till September 30," the RBI Governor said. He added that the deadline was given so that people take the matter seriously. How will it affect the Indian economy? The impact of the withdrawal on the economy will be "very, very marginal", the RBI governor said, adding ₹2,000 notes made up for just 10.8 per cent of the total currency in circulation. "₹2000 banknotes were introduced primarily to replenish the notes withdrawn following demonstration," the RBI chief added. ALSO WATCH | Reserve Bank of India: 'Clean money policy' reason for withdrawal × Eighty-nine per cent of the ₹2,000 notes were issued before March 2017. They are said to be at the end of their estimated life span of four to five years. "The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to ₹3.62 lakh crore, constituting only 10.8 per cent of notes in circulation on March 31, 2023," RBI said. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Will Indians be able to spend using ₹1000 notes again? RBI governor responds

<p>India's central bank, as part of its 'Clean Note Policy', declared that ₹2,000 currency notes will no longer be in circulation in the world’s fifth largest economy. The Reserve Bank of India has declared September 30, 2023, as the deadline to exchange the to-be-scrapped notes. The notes, however, will continue to be legal tender.&nbsp;</p>

<p>As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes. The Reserve Bank of India, while explaining the move, said that the stock of other banknotes in denominations continues to be "adequate" to meet the currency requirement of the public.</p>

<p><strong>ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/india-clean-note-policy-rbi-governor-explains-decision-to-withdraw-rs-2000-notes-594981">'Clean note policy': RBI governor explains decision to withdraw Rs 2,000 notes</a></strong></p>

<p>For the ₹2,000 currency notes at the end of their lifespan, the Reserve Bank of India will bring back into vogue its remarkable Currency Verification and Processing System (CVPS).</p>

<h2><strong>What RBI will do with scrapped currency notes: About Currency Verification Processing System</strong></h2>

<p>The RBI has&nbsp;rules in place for the disposal of notes unfit for circulation.&nbsp;</p>

<p>The currency notes, after collection from the concerned banks, are deposited at the Issue offices of the Reserve Bank. After grouping and sorting them under the Currency Verification and Processing System (CVPS), the RBI examines the currency notes to determine their genuineness.&nbsp;</p>

<p><strong>ALSO WATCH |&nbsp;Reserve Bank of India: 'Clean money policy' reason for withdrawal</strong></p>

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<p>Each CVPS installation is capable of processing up to 60,000 currency notes each hour. CVPS counts the notes and separates genuine ones from fake currency notes. The fake notes are destroyed by shredding.</p>

<p>But there is a catch.</p>

<p>The genuine currency notes which still had quality and life left for circulation before being deemed scrapped, are shredded in a way that they could be recycled into the new currency papers.</p>

<p>This means that the paper used to make the ₹2,000 currency note would eventually come back to your pocket in some other denomination.</p>

<h2><strong>What happens to fake or less-qualitative currency notes?</strong></h2>

<p>They are shredded and converted into briquettes. Such briquettes are sold for industrial use through a tender invited by the Reserve Bank of India.&nbsp;</p>

<p>In 2016, when India's Prime Minister Narendra Modi announced the demonetisation of about 89 per cent of the country's currency in circulation, RBI's state branch in Kerala state's Thiruvananthapuram sold it to India's only hardboard-making factory, The Western India Plywoods Limited.&nbsp;</p>

<p>The factory in the state's Kannur district reportedly uses a combination of around five&nbsp;per cent of the paper pulp created from these notes with 95 per cent of conventional wood pulp to make hardboards.</p>

<p>The Kannur factory reportedly received around 80 metric tonnes of shredded demonetised notes in the first three weeks after November 8, 2016, when the demonetisation was implemented.&nbsp;</p>

<p>WION has reached out to The Western India Plywoods Limited for a comment on the story. The story will be updated if and when they respond.&nbsp;</p>

<p><strong>WATCH WION LIVE HERE</strong></p>

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India's central bank, as part of its 'Clean Note Policy', declared that ₹2,000 currency notes will no longer be in circulation in the world’s fifth largest economy.

India's central bank, as part of its 'Clean Note Policy', declared that ₹2,000 currency notes will no longer be in circulation in the world’s fifth largest economy. The Reserve Bank of India has declared September 30, 2023, as the deadline to exchange the to-be-scrapped notes. The notes, however, will continue to be legal tender. As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation. This translates to about ₹3.62 lakh crore of currency notes. The Reserve Bank of India, while explaining the move, said that the stock of other banknotes in denominations continues to be "adequate" to meet the currency requirement of the public. ALSO READ | 'Clean note policy': RBI governor explains decision to withdraw Rs 2,000 notes For the ₹2,000 currency notes at the end of their lifespan, the Reserve Bank of India will bring back into vogue its remarkable Currency Verification and Processing System (CVPS). What RBI will do with scrapped currency notes: About Currency Verification Processing System The RBI has rules in place for the disposal of notes unfit for circulation. The currency notes, after collection from the concerned banks, are deposited at the Issue offices of the Reserve Bank. After grouping and sorting them under the Currency Verification and Processing System (CVPS), the RBI examines the currency notes to determine their genuineness. ALSO WATCH | Reserve Bank of India: 'Clean money policy' reason for withdrawal × Each CVPS installation is capable of processing up to 60,000 currency notes each hour. CVPS counts the notes and separates genuine ones from fake currency notes. The fake notes are destroyed by shredding. But there is a catch. The genuine currency notes which still had quality and life left for circulation before being deemed scrapped, are shredded in a way that they could be recycled into the new currency papers. This means that the paper used to make the ₹2,000 currency note would eventually come back to your pocket in some other denomination. What happens to fake or less-qualitative currency notes? They are shredded and converted into briquettes. Such briquettes are sold for industrial use through a tender invited by the Reserve Bank of India. In 2016, when India's Prime Minister Narendra Modi announced the demonetisation of about 89 per cent of the country's currency in circulation, RBI's state branch in Kerala state's Thiruvananthapuram sold it to India's only hardboard-making factory, The Western India Plywoods Limited. The factory in the state's Kannur district reportedly uses a combination of around five per cent of the paper pulp created from these notes with 95 per cent of conventional wood pulp to make hardboards. The Kannur factory reportedly received around 80 metric tonnes of shredded demonetised notes in the first three weeks after November 8, 2016, when the demonetisation was implemented. WION has reached out to The Western India Plywoods Limited for a comment on the story. The story will be updated if and when they respond. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

What will RBI do with your out-of-use ₹2,000 currency notes?

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Will Indians be able to spend using ₹1000 notes again? RBI governor responds

What will RBI do with your out-of-use ₹2,000 currency notes?