NEW DELHI: In contrast to 2016, the Government and the Reserve Bank of India see no challenge in exchanging Rs 2,000 notes, which remain legal tender, although the central bank has set a September 30 deadline for exchanging or depositing the high-value notes.
First of all, the number of Rs 2,000 notes in circulation had been declining over the years as printing was halted a few years ago due to the government and the RBI considered it as a stopgap solution after demonetization.
As a matter of fact, Nripendra Misraformer Chief Secretary to the Prime Minister Narendra Moditold News18 that the Prime Minister is not interested in the introduction of Rs 2,000 notes.
“However, on the advice of his team, he (the Prime Minister) allowed the notes as he is the captain. But it was clear to him and to us at the time that this was a short-term agreement. The poor and middle class don’t do that. “They use 2,000 rupee notes, smaller notes like 500 rupees and 100 rupees are used and the Prime Minister made it clear that he did not want the poor to be affected,” he said retired civil servants.
With bankers avoiding long lines, government sources said it will be difficult for the opposition to argue that the move will inconvenience the public, especially when the majority of people will have two to three top-denomination notes.
“The Rs 2,000 banknotes are rarely used as a medium of exchange. In fact, they currently represent only 10.8% of cash in circulation (CiC). Digital payments are used in large numbers for economic transactions. The role of “Physical banknotes, particularly Rs 2000 notes, as a medium of exchange has declined significantly,” tweeted India’s Executive Director at the IMF Krishnamurthy Subramanian.
First of all, the number of Rs 2,000 notes in circulation had been declining over the years as printing was halted a few years ago due to the government and the RBI considered it as a stopgap solution after demonetization.
As a matter of fact, Nripendra Misraformer Chief Secretary to the Prime Minister Narendra Moditold News18 that the Prime Minister is not interested in the introduction of Rs 2,000 notes.
“However, on the advice of his team, he (the Prime Minister) allowed the notes as he is the captain. But it was clear to him and to us at the time that this was a short-term agreement. The poor and middle class don’t do that. “They use 2,000 rupee notes, smaller notes like 500 rupees and 100 rupees are used and the Prime Minister made it clear that he did not want the poor to be affected,” he said retired civil servants.
With bankers avoiding long lines, government sources said it will be difficult for the opposition to argue that the move will inconvenience the public, especially when the majority of people will have two to three top-denomination notes.
“The Rs 2,000 banknotes are rarely used as a medium of exchange. In fact, they currently represent only 10.8% of cash in circulation (CiC). Digital payments are used in large numbers for economic transactions. The role of “Physical banknotes, particularly Rs 2000 notes, as a medium of exchange has declined significantly,” tweeted India’s Executive Director at the IMF Krishnamurthy Subramanian.
