Shops cannot decline Rs 2000 notes, says RBI Governor Shaktikanta Das

Warding off fears about the acceptability of Rs 2,000 notes, RBI Governor Shaktikanta Das has said that the withdrawn notes will continue to be legal tender. Speaking for the first time after the withdrawal decision was announced, the RBI Governor said that the majority of the withdrawn Rs 2,000 rupee notes are likely to be returned to the central bank by September 30.

New Delhi : Reserve Bank of India (RBI) Governor Shaktikanta Das has reiterated that the Rs 2,000 currency notes are withdrawn from circulation and they will continue to be legal tender. Nobody, not even shops, can decline these notes as such and the banks will remain sensitive to the needs of the people regarding the exchange of these notes, he said.

The RBI Governor, speaking to reporters for the first time after the withdrawal decision was announced, said that the decision on the withdrawal of the Rs 2000 notes was taken as part of the currency management plan and the banks have been instructed to make necessary arrangements for the exchange of the notes. These notes were introduced at that time to replenish currency following the withdrawal of currency during demonetisation.

Shaktikanta Das said that as of now, there are adequate currency notes of other denominations in circulation to meet public needs and the circulation of Rs 2,000 notes has come down significantly now, standing at just 10.8 per cent of total currency. As such, the impact of this withdrawal will be very marginal on the country's economy, he added.

Shaktikanta Das further said that the majority of the withdrawn Rs 2,000 rupee notes are likely to be returned to the central bank by September 30, the deadline fixed for depositing and exchange of these notes. He asserted that the country's currency management system was very strong.

The RBI Governor said that there was no need to worry about currency availability as sufficient quantities of notes were available in the country's system. He further said that the exchange rate remained stable despite a crisis in financial markets on account of the Ukraine conflict and the failure of certain banks in the West.

He said that there was no need to rush to the banks for the exchange of notes as the RBI would bring in regulations whenever necessary to address the needs of the public.