Editor's Pick: Do not rush to swap ₹2,000 notes, says RBI

On Monday, Reserve Bank of India Governor Shaktikanta Das clarified that there was no need to rush to the banks to exchange or deposit ₹2,000 currency notes fearing their legal tender status. He said that the September 30 deadline was only meant to nudge people to return the notes soon. The central bank announced the withdrawal of the ₹2,000 currency notes from circulation on May 19. Speaking in Delhi, he said a time limit had been specified to ensure that the “announcement is taken seriously”, adding that there were adequate currency stocks with the banking system to replace these notes. While banks have been advised to make suitable arrangements for people to exchange the notes, Mr. Das indicated he did not expect bank branches to see the kind of rush like in 2016, after the old ₹500 and ₹1,000 notes were scrapped. Earlier in the day, the central bank directed all banks to ensure that the over-the-counter exchange facility for the high-denomination notes is provided to the public, as was being done in the past. The regulator also advised banks to provide appropriate infrastructure at their branches such as a shaded waiting space and drinking water facilities for people as the exercise is being conducted in the summer season. “Banks shall maintain daily data on deposit and exchange of ₹2,000 banknotes in a format which includes the bank’s name, date, amount of ₹2,000 notes exchanged, amount of ₹2,000 notes deposited, and total amount received and submit the same as and when called for,” the RBI circular to lenders said. Research has estimated that the return of ₹2,000 currency notes could boost banks’ deposit base and liquidity in the money markets by anywhere between ₹40,000 crore to ₹1.1 lakh crore, even if just about a third of these heavily hoarded high currency notes are flushed out by the exercise. Opposition is split over the move, with Congress veteran P Chidambaram lauding the withdrawal of ₹2,000 banknotes, calling it a rectification of its 2016 mistake. However, Communist Party of India(CPI) national secretary K. Narayana said that the move was to only help the rich who amassed wealth through illicit means. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor’s Pick and more. Click here. The Hindu’s Editorials Solidarity for peace: on the Hiroshima meet of the G-7 Slow withdrawal: on the RBI and the ₹2,000 note The Hindu’s Daily News Quiz Name the Ganga rejuvenation project that was recognised by the United Nations in December 2022 as one of the top 10 World Restoration Flagships involved in reviving the natural world? Namami Gange Clean Ganga Swachh Ganga Abhiyan Revive Ganga To know the answer and to play the full quiz, click here. [logo] Editor's Pick 23 May 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Do not rush to swap ₹2,000 notes: RBI On Monday, Reserve Bank of India Governor Shaktikanta Das clarified that there was no need to rush to the banks to exchange or deposit ₹2,000 currency notes fearing their legal tender status. He said that the September 30 deadline was only meant to nudge people to return the notes soon. The central bank announced the withdrawal of the ₹2,000 currency notes from circulation on May 19. Speaking in Delhi, he said a time limit had been specified to ensure that the “announcement is taken seriously”, adding that there were adequate currency stocks with the banking system to replace these notes. While banks have been advised to make suitable arrangements for people to exchange the notes, Mr. Das indicated he did not expect bank branches to see the kind of rush like in 2016, after the old ₹500 and ₹1,000 notes were scrapped. Earlier in the day, the central bank directed all banks to ensure that the over-the-counter exchange facility for the high-denomination notes is provided to the public, as was being done in the past. The regulator also advised banks to provide appropriate infrastructure at their branches such as a shaded waiting space and drinking water facilities for people as the exercise is being conducted in the summer season. “Banks shall maintain daily data on deposit and exchange of ₹2,000 banknotes in a format which includes the bank’s name, date, amount of ₹2,000 notes exchanged, amount of ₹2,000 notes deposited, and total amount received and submit the same as and when called for,” the RBI circular to lenders said. Research has estimated that the return of ₹2,000 currency notes could boost banks’ deposit base and liquidity in the money markets by anywhere between ₹40,000 crore to ₹1.1 lakh crore, even if just about a third of these heavily hoarded high currency notes are flushed out by the exercise. Opposition is split over the move, with Congress veteran P Chidambaram lauding the withdrawal of ₹2,000 banknotes, calling it a rectification of its 2016 mistake. However, Communist Party of India(CPI) national secretary K. Narayana said that the move was to only help the rich who amassed wealth through illicit means. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor’s Pick and more. [Click here](. The Hindu’s Editorials [Arrow][Solidarity for peace: on the Hiroshima meet of the G-7]( [Arrow][Slow withdrawal: on the RBI and the ₹2,000 note]( The Hindu’s Daily News Quiz Name the Ganga rejuvenation project that was recognised by the United Nations in December 2022 as one of the top 10 World Restoration Flagships involved in reviving the natural world? - Namami Gange - Clean Ganga - Swachh Ganga Abhiyan - Revive Ganga To know the answer and to play the full quiz, [click here](. 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