Are ₹ 1,000 Notes Coming Back? RBI Governor’s Reply
New Delhi: Reserve Bank of India has no plans to reintroduce ₹1,000 notes to cushion the blow following the withdrawal of ₹2,000 notes, RBI Governor Shaktikanta Das said today.
Asked if there was a possibility of re-introduction of Rs 1,000 notes, Mr Das said, “It is speculative. There is no such plan at present.”
The ₹ 2,000 notes were introduced in November 2016 to meet the currency demand of the economy “rapidly” after the massive demonetisation drive, which included the legal tender status of all ₹ 500 and ₹ 1,000 notes in circulation at the time. The Reserve Bank of India has announced that it will be withdrawn. The move wiped out ₹ 10 lakh crore from circulation overnight.
“Due to the achievement of that objective and adequate availability of other denominations of currency notes, printing of ₹ 2000 currency notes has been discontinued in 2018-19,” RBI said.
Speaking to reporters for the first time after the surprise decision, Mr. Das said that no one should rush to withdraw or exchange their ₹2,000 notes.
“There is no reason for banks to rush now. You have four months till September 30,” the RBI governor said, mainly because the deadline has been given so people will take it seriously and try to withdraw the notes.
He said the impact of the withdrawal on the economy would be “very, very minimal”, adding that the ₹2,000 notes made up just 10.8 per cent of the total currency in circulation.
“Rs 2000 bank notes were introduced primarily to supplement the withdrawn notes following the protest,” the RBI chief added.
Eighty-nine percent of the 2,000 rupee notes were issued before March 2017 and will reach the end of their estimated life of four to five years, the central bank said.
From a high of ₹ 6.73 lakh crore on March 31, 2018 (37.3% of the notes in circulation), the total value of these currency notes in circulation has declined to ₹ 3.62 lakh crore, which is only 10.8% of the notes in circulation on March 31. 2023,” RBI said