No reason for public to rush to banks: RBI Governor on Rs 2000 note withdrawal
"The Rs 2000 note was introduced with a specific purpose to replenish currency during demonetisation; the purpose has been served. There is no reason for the public to rush to banks, there is enough time of 4 months. We expect most notes to return," RBI Governor Shaktikanta Das said.
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FollowThe purpose of introducing the Rs 2000 notes has been served and we expect all the Rs 2000 notes to come back, Reserve Bank of India Governor Shaktikanta Das said on Monday while briefing media persons on the decision to withdraw the notes from circulation.
"The September 30 timeline has been specified so that the announcement is taken seriously. We assure people in India and citizens living abroad or not in the country, RBI will be sensitive to any difficulties people face," he said, adding, "Rs 2000 was introduced with a specific purpose to replenish currency during demonetisation; the purpose has been served. There is no reason for the public to rush to banks, there is enough time for 4 months. We expect most notes to return."
Seeking to assuage people, the RBI Governor said there are more than adequate quantities of new notes are available and already printed, "not just with the RBI but also currency chests".
The RBI governor dismissed speculation about the integrity of the currency being compromised. He said, "The security feature of these high-value currency notes has not been breached. Most breaches of security features take place outside the country. High value notes are prone to cloning."
Earlier in the day, the RBI directed the banks to maintain daily data on deposits and exchange of Rs 2000 banknotes and submit the same as and when called for.
'The facility of exchange of Rs 2000 banknotes across the counter shall be provided to the public in the usual manner, that is, as was being provided earlier. Banks are advised to provide appropriate infrastructure at the branches such as shaded waiting space, drinking water facilities, etc. considering the summer season,' an RBI notification said.
The RBI had last Friday, in a surprise move, announced withdrawal of Rs 2,000 currency notes from circulation but gave the public time till September 30 to either deposit such notes in accounts or exchange them at banks. Unlike the November 2016 shock of demonetisation, when old Rs 500 and Rs 1,000 notes were invalidated overnight, the Rs 2,000 notes will continue to be legal tender.
Although the facility for exchange is available from May 23, many customers were seen visiting their branches with the Rs 2,000 notes over the weekend. Bank officials returned such customers after advising them about the start date for the exchange.
Some of the customers used cash deposit machines on Saturday to deposit Rs 2,000 notes in their accounts. Many have tried jewellery shops to buy gold and other precious metals. However, jewellers are also hesitant in accepting Rs 2,000 notes and asking for KYC beyond prescribed cash purchases in many parts of the country.
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