New Delhi, May 22, 2023, Special Correspondent
New Delhi, May 22: Reserve Bank of India Governor Shaktikanta Das has said the withdrawal of Rs 2,000 banknotes is part of currency management.
He said the RBI has been following a clean note policy for a long time.
Addressing a press conference here, Das said that from time to time, it withdraws notes of a particular series and issues fresh notes.
Das said the Rs 2,000 currency was introduced primarily to replenish the notes withdrawn following demonetisation and that purpose has been fulfilled and there are enough notes in circulation.
He added that banks have been asked to make necessary arrangements for exchange of Rs 2,000 banknotes starting tomorrow.
The RBI Governor expected that most of the notes will come back to the exchequer by September 30.
Das also clarified that RBI is withdrawing the Rs 2,000 from circulation but they continue as legal tender. He said the RBI will be sensitive to difficulties faced by people regarding the exchange of bank notes.
The Reserve Bank of India has directed banks to maintain data on a daily basis on the amount of Rs 2,000 banknotes exchanged and the amount that has been deposited into accounts.
The central bank has added that banks will have to submit the information as and when called for.
In a circular issued today, RBI has said that banks must maintain adequate shaded waiting space and drinking water considering the summer season.
In the circular the RBI has mentioned that the facility of exchange of Rs 2,000 banknotes across the counter shall be provided to the public, in the usual manner.
Meanwhile, a public interest litigation was filed in the Delhi High Court on Monday by lawyer Ashwini Kumar Upadhyay, who contended that notifications by RBI and SBI in this regard are "arbitrary, irrational and offend Articles 14 of the Constitution of India."
The petition said that a large amount of the currency has reached either the individual's locker or has been hoarded by the separatists, terrorists, Maoists, drug smugglers, mining mafias & corrupt people .
The petition highlighted that cash transaction in high value currency is the main source of corruption and is used for illegal activities like terrorism, naxalism, separatism, radicalism, gambling, smuggling, money laundering, kidnapping, extortion, bribing and dowry, etc. and the RBI and SBI should ensure that Rs 2,000 banknotes are deposited in respective bank accounts only.