RBI may tighten the rules if most of the Rs 2,000 currency notes don’t come back to banks by 30th September 2023, as per reports. The central bank announce the withdrawal of Rs 2,000 notes, the highest denomination in circulation, but said the currency will remain a legal tender.
It has ask the public to deposit/exchange the currency notes by 30th September 2023.
If the bulk amount of the Rs 2000 notes come back through the withdrawal mechanism there would be no need to go tough and instantly declare it illegal tender, as per sources.
This will help those who are abroad or have valid reasons for failing to exchange or deposit the currency notes.
So, if more than expect notes do not come back to the system directly by those who have them or those who receive them in transactions the Reserve Bank of India may have to indulge in toughening of rules to ensure compliance, as per sources.
As, RBI Governor Shaktikanta Das said most of the Rs 2,000 rupee notes are expect to be return by the deadline.
He urged the public not to rush as there were four months before the deadline.
Rs 2,000 note was introduce primarily to meet the currency requirement of the economy after the demonetisation of Rs 500 and Rs 1000 currency notes in November 2016.
As on Friday, the central bank said that about 89% of the Rs 2,000 banknotes were issue prior to March 2017 and were at the end of their estimate life span of 4-5 years.
The total value of these banknotes in circulation decline from Rs 6.73 lakh crore at its peak of 31st March, 2018 to Rs 3.62 lakh crore, constituting only 10.8% of notes on 31st March, 2023.
The Reserve Bank of India Governor said the central bank will see how much of the total notes in circulation come back.
Shaktikanta Das said :
While, Shaktikanta Das met the board of directors of all public sector banks to discuss issues relate to governance and ethics.
The one-day interactive meeting was organise by the Department of Supervision of the RBI.
Shaktikanta Das address the directors, both whole time and independent on issues relate to governance, ethics, and the role of the boards in assurance functionalities of the banks, besides highlighting the supervisory expectations, as per sources.