Demonetization of Rs. 2000: Is Rs. 500 Next? government acts
In mid-May of this year, the RBI stated that Rs. 2,000 notes will no longer be in use. September is the final day to deposit notes of Rs. 2,000 at the bank.
The Finance Ministry received questions on the prospect of demonetizing Rs. 500 notes and reinstating Rs. 1,000 notes into our financial system during the current monsoon period. The Finance Ministry, however, put an end to any rumors about the demonetization of the biggest denomination of currency notes now in use in our economy, the Rs. 500 notes.
In response to a query on the re-entry of the Rs. 1,000 notes, the ministry said that the RBI had decided to carry out the withdrawal as a currency management strategy in order to avoid any public discomfort or economic disruption. To ensure that all exchange and withdrawal demands are met, a sufficient buffer stock of banknotes in all denominations is rigorously maintained throughout the country. Rest assured that the withdrawal of Rs. 2,000 banknotes has been properly accounted for in this year’s requirements.
According to the response, it became clear that our nation is well-prepared with a enough supply of banknotes in a variety of denominations after the removal of Rs. 2,000 currency notes. This definitively ends any ambitions to bring back Rs. 1,000 notes in our economy.
