No plans to withdraw Rs 500 notes, ask public not to speculate, says RBI Governor

Mangalore Today News Network

New Delhi, June 08, 2023: The Reserve Bank of India has no plans to withdraw Rs 500 notes from circulation or re-introduce 1000-rupee notes, Governor Shaktikanta Das said on Thursday.

 

 

"The RBI is not thinking of withdrawing Rs 500 notes, or re-introducing notes in Rs 1,000 denomination; request public not to speculate," Das said at a press conference after unveiling the second bi-monthly monetary policy for FY24.

The RBI Governor’s clarification comes in the wake of the withdrawal of Rs 2,000 notes from circulation. Das said that 50 per cent of the Rs 2,000 notes in circulation have come back. The value of the notes that have been returned is Rs 1.82 lakh crore.

"Total Rs 3.62 lakh crore of Rs 2,000 banknotes were in circulation. After the announcement, about Rs 1.8 lakh crores of Rs 2,000 banknotes have come back. This is roughly about 50 per cent of the Rs 2,000 banknotes, which were in circulation...," he detailed.

Of the returned 2,000-rupee notes, 85 per cent of the notes have come back as bank deposits, while the rest are for exchange, Das added.

The RBI on May 19 announced the withdrawal of its highest value currency note, Rs 2,000, from circulation, adding that the notes will continue to be legal tender. The central bank said people can deposit or exchange for lower denomination notes till September 30 for up to Rs 20,000 at a time.