No need to rush for exchange: RBI Governor Shaktikanta Das on ₹2,000 note ban

Even when the ₹2,000 notes were in circulation, there was reluctance among shopkeepers to accept these notes; this is not new, the RBI Governor said.

RBI Governor Shaktikanta Das on Monday said there is no need to rush to the banks to exchange ₹2,000 as the deadline of September 30 is still four months away and the Reserve Bank of India will be sensitive to all issues cropping up in the process, if any. The decision to withdraw ₹2,000 from circulation is part of the currency management operations of the Reserve Bank and is in tune with the clean note policy, Das said adding that the deadline is only to streamline the process while the RBI will be sensitive to all kinds of issues arising. Most of the ₹2,000 notes in circulation now will come back to the RBI by September 30, Das said. As there is already a rush in the petrol pumps to exchange ₹2,000 notes, the RBI governor said there is more than adequate stock of other denominations in the system. The exchange of ₹2,000 notes at banks will begin from tomorrow.

The ₹2,000 bank notes were introduced to primarily replenish the notes withdrawn following demonetisation and the purpose has been fulfilled, Das said.

"Unless you give a particular time, the process will not reach the stage of finality and you have to give a time so that the announcement is taken seriously. The banks have been advised to make necessary arrangements to ensure that people don't have to stand in this scorching heat," Das said.

"Take your time. The process is starting tomorrow but you don't have to go tomorrow," Das said.

₹2,000 note ban in India: For those who are abroad

Shaktikanta Das hinted at a possible extension of the September 30 deadline as he said he is aware that many people are abroad and they may not be able to exchange or deposit their ₹2,000 notes within the deadline. "We will address this issue and see what can be done," Das said.

Impact of ₹2,000 note ban on economy

There will be no impact on economic activity, Das said citing personal experience and informal surveys confirming that ₹2,000 notes are hardly used anywhere for economic activity.

'Question will always rise why now'

On questions being raised over RBI's sudden decision to withdraw ₹2,000 notes from circulation, Das said, "Such questioned will always be raised -- if we had done it earlier tor later."

How to exchange ₹2,000 notes: All you need to know

The process of exchanging or depositing the ₹2,000 notes will start tomorrow.

1. The State Bank of India said no ID proof, requisition slips will be required for the exchange of ₹2,000 notes.

2. A maximum of 10 currency notes can be exchanged at a time.

3. Existing Income Tax requirement of PAN for ₹50,000 or more deposits in bank accounts will apply on ₹2,000 notes as well

4. The RBI has asked the banks to provide appropriate infrastructure at the branches such as shaded waiting spaces, and drinking water facilities considering the summer season.

5. The RBI has asked the banks to maintain daily data on the deposit and exchange of ₹2,000 banknotes.

Disclaimer: This Article is auto-generated from the HT news service.