As a part of the clean note policy, the Reserve Bank unexpectedly issued a recall order on May 19 for the ₹ 2,000 banknotes amounting to approximately ₹ 3.62 lakh crore. According to Reserve Bank Governor Shaktikanta Das, within a month of the recall order, more than two-thirds of the ₹ 2,000 currency notes have been returned to the system. During the announcement of the second monetary policy review of the fiscal on June 8, Das revealed that around ₹ 1.8 lakh crore worth of ₹ 2,000 notes had been returned, constituting approximately 50% of the notes in circulation as of March 31. Among these returned notes, 85% were in the form of deposits, while the remaining were exchanged.
Governor Das, in an interview at the RBI headquarters, informed PTI Bhasha that more than two-thirds, equivalent to ₹ 2.41 lakh crore, of the recalled ₹ 3.62 lakh crore worth of ₹ 2,000 banknotes have returned to the system as of mid-last week. He further explained that out of the total amount returned, 85% are in the form of deposits, while the remaining are exchanged for other currency.
Regarding the deadline for exchange/deposits set by the central bank for September 30, 2023, Mr. Das clarified that it is not an inflexible date, urging people not to rush and claim their money.
In response to concerns about the impact of the note recall on monetary stability and consumer spending, Mr. Das stated that he does not foresee any negative effects on the economy. He also declined to comment on an analyst report suggesting that the move could potentially boost consumer spending and help stimulate the economy beyond the projected growth rate of 6.5%.
Following the recall order issued on May 19, which
prompted banks to establish special counters for public note collection
starting from May 23, the existing ₹ 2,000 denomination banknotes will remain
legal tender, according to both the central bank and the government.
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