Reserve Bank of India (RBI) governor Shashikant Das has said in a recent statement that two-thirds of the total Rs 3.62 lakh crore (2.41 More than lakh crore rupees) have returned to the bank. He also said that the 2000 rupee note that is being withdrawn now will not have any adverse effect on the country's economy.
On May 19, 2023, the RBI had suddenly decided to withdraw the country's largest currency note of Rs 2000. And from then till September 30, people were asked to go to the bank to deposit the 2000 rupee note in their account or exchange it for another denomination note. According to this value, in March 2023, a total of 3.67 lakh crore notes were of 2000 value.
Shashikant Das said in a conversation in his RBI office, “After the decision to withdraw the Rs 2000 note in circulation, more than 2/3 (two-thirds) of the total Rs 3.62 lakh crore note i.e. 2.41 lakh crore More than Rs. 2000 notes have come back to the bank.” Giving more information, he said that roughly 85 percent of the 2000 notes have come as deposits in bank accounts.
Earlier on June 8, after the Monetary Policy Review (MPC), he had said that Rs 2000 notes worth Rs 1.8 lakh crore have been returned. This was about 50 per cent of the total Rs 2000 notes in circulation. Roughly 85 per cent of this is deposited in bank branches in the country while the rest was exchanged for notes of other denominations.
When asked about the impact of the decision to withdraw 2000 rupee note on the economy, he replied, “I can tell you clearly that the note which has been withdrawn now has a negative impact on the economy of the country. There will be no adverse effect.”
In a report by SBI Research, it has been said that the Reserve Bank's decision to withdraw Rs 2000 note from circulation may spur consumption and this may lead to economic growth rate of more than 6.5 percent in the current financial year.
The Reserve Bank has estimated the economic growth rate to be 6.5 percent in the current financial year and when asked questions about this report, Shashikant Das said, “When the decision to withdraw the 2000 note was taken, it affected the country's economy. There was nothing to do with growth. Whatever will be the result of this decision will be known later but in one thing I can tell you clearly that those who are withdrawing 2000 rupee note now will not have any adverse effect on the economy.
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Information About Reserve Bank of India (RBI):
The Reserve Bank of India (RBI) is the central banking institution of India. It was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The RBI is responsible for the regulation and supervision of the country's banking system, the issuance of the Indian rupee currency, and the management of the foreign exchange reserves of India.
Here are some key aspects of the Reserve Bank of India:
1. Monetary Policy: The RBI formulates and implements monetary policy in India. It aims to maintain price stability and ensure adequate credit flow to support economic growth. The Monetary Policy Committee (MPC), constituted by the RBI, sets the policy interest rates and takes decisions on various monetary measures.
2. Banking Regulation and Supervision: The RBI acts as the regulator and supervisor of banks and other financial institutions in India. It grants licenses to banks, sets prudential norms and regulations, and monitors their compliance. It conducts inspections, audits, and takes corrective actions to maintain the stability and soundness of the banking system.
3. Currency Issuance: The RBI has the sole authority to issue and manage the currency in India. It ensures an adequate supply of currency notes and coins to meet the demand of the economy. It also works to prevent counterfeiting and maintain the integrity of the currency.
4. Foreign Exchange Management: The RBI manages the country's foreign exchange reserves and formulates policies related to foreign exchange transactions. It aims to maintain stability in the foreign exchange market and manage the balance of payments effectively.
5. Developmental Role: The RBI plays a developmental role in promoting a stable and efficient financial system in India. It supports initiatives for financial inclusion, develops payment and settlement systems, and facilitates the development of financial markets.
6. Banking Services: The RBI provides banking services to the government, banks, and financial institutions. It acts as a banker to banks and undertakes transactions on their behalf. It also acts as the banker to the central and state governments, managing their accounts and facilitating their borrowing requirements.
7. Research and Data: The RBI conducts research and analysis on various aspects of the economy and the financial system. It publishes reports, data, and economic indicators that provide valuable insights into the country's economic conditions.
8. International Engagement: The RBI represents India in international forums related to central banking and monetary matters. It collaborates with other central banks and international organizations to share knowledge, promote best practices, and contribute to global financial stability.
The RBI operates under the guidance of a Central Board of Directors, which consists of government-appointed officials, representatives from the Ministry of Finance, and eminent professionals from various fields. The Governor of the RBI, appointed by the government, is the chief executive of the bank and heads the institution.
Overall, the Reserve Bank of India plays a crucial role in maintaining financial stability, managing monetary policy, regulating the banking sector, and promoting economic development in India.
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