Reserve Bank of India (RBI) Governor Shaktikanta Das has stated that the majority of the withdrawn Rs 2,000 banknotes are expected to be returned by September 30. The decision to withdraw the highest denomination currency note is part of the bank’s currency management strategy. Das emphasized that Rs 2,000 currency notes continue to be legal tender and were primarily introduced to replenish the currency supply following the 2016 demonetization.
Background and Impact
The withdrawal of the Rs 2,000 banknotes is not expected to have a significant impact on the economy, as these notes make up only 10.8% of the total currency in circulation. The Indian currency management system is robust, and the exchange rate has remained stable despite global financial market crises. Das assured the public that the Reserve Bank of India has sufficient stocks of printed notes, both with the RBI and the currency chests operated by banks.
Exchange and Legal Tender
While the withdrawn Rs 2,000 banknotes can be deposited in bank accounts or exchanged for other currency, banks have been advised to make necessary arrangements for the exchange process. Das clarified that Rs 2,000 currency notes continue to be legal tender, ensuring that they can still be used for transactions.
Income Tax Requirements and Regulations
Existing income tax requirements, such as furnishing PAN for deposits of Rs 50,000 or more in bank accounts, will continue to apply to deposits of the withdrawn Rs 2,000 banknotes. The RBI is monitoring liquidity in the system on a daily basis and assures the public that necessary regulations will be implemented if needed.
The deadline for returning the withdrawn Rs 2,000 banknotes is September 30, as communicated by the Reserve Bank of India.
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