No plans to introduce 1000 rupee notes: RBI Governor

A proposal to bring back 1,000 rupee notes was dismissed by the Reserve Bank of India (RBI) on Monday. Speculations have been swirling that the government may reintroduce the Rs 1,000 note. RBI governor Shakkanta Das stated that there is no proposal to reintroduce Rs 1,000 notes at this time.

Shakktanta Das, the Governor of the Reserve Bank of India, has stated that there is no need to rush to the banks to exchange the notes. RBI Advises Banks To Continue Exchange of Rs 2,000 Notes In Usual Manner "There is no reason to rush to banks now. You have four months, till September 30. The deadline has been given so that it is taken seriously by people. Otherwise, if you leave it open-ended, it become kind of an endless process," he said.

It was announced last week by the central bank that the Rs 2,000 denomination banknotes would be withdrawn from circulation as part of its 'Clean Note Policy'. The introduction of the Rs 2,000 banknotes was initially made in November 2016 in order to address the urgent currency requirements of the economy following the withdrawal of the legal tender status of the Rs 500 and Rs 1,000 banknotes.

Due to the ample supply of banknotes in other denominations now available, the RBI stated in a statement that printing of the Rs 2000 banknotes will cease in 2018-19. "Approximately 89 per cent of the Rs 2000 banknotes were issued prior to March 2017 and are nearing the end of their estimated lifespan of 4-5 years. The total value of these banknotes in circulation has significantly decreased from its peak of Rs 6.73 lakh crore as of March 31, 2018 (constituting 37.3 per cent of the total Notes in Circulation) to Rs 3.62 lakh crore, representing only 10.8 per cent of the total Notes in Circulation as of March 31, 2023," it added.

In light of these factors, the Reserve Bank of India has decided to withdraw the Rs 2000 denomination banknotes from circulation while reaffirming their continued acceptance as legal tender.