The Reserve Bank of India (RBI) said on Thursday that the government’s decision to stop issuing Rs 2,000 notes has resulted in the return of Rs 1.80 lakh crores worth of notes to the system.
RBI Governor Shaktikanta Das addressing reporters after releasing the bi-monthly monetary policy said, “About 50 per cent of Rs 2,000 notes in circulation has come back in the banking system. So far, Rs 1.80 lakh crore have come back after the announcement.”
He said that as of March 31, 2023, there were 2.000 rupee notes in circulation, totaling 3.62 lakh crores.
The RBI had already stated that it would stop printing its biggest denomination currency note. In 2016, the Rs 2,000 note entered circulation.
Although it was requested that people deposit or exchange their notes by September 30, 2023, the note will continue to be accepted as legal cash.
It should be recalled that the Center’s shocking action in 2016—the overnight withdrawal of 86% of the currency in circulation—was similar of the latest decision.
The RBI maintained the repo rate for a second day in a row while indicating that it wished to see inflation continue to decline while maintaining the growth pace.
The benchmark repurchase, or repo, rate was maintained at 6.50 percent by a unanimous vote of the monetary policy committee (MPC), which consists of three members from the RBI and three outside experts.
The top bank maintained its 6.5% forecast for GDP growth for the current fiscal year (April 2023 to March 2024), while slightly decreasing its forecast for retail inflation to 5.1% from 5.2% before.