The Reserve Bank of India announced the withdrawal of ₹2,000 currency notes in mid-May of this year. Now, the last date to submit ₹2,000 banknotes is in September month.
Demonetisation of ₹500 Notes and Reintroduction of ₹1,000 Notes
In the recent Monsoon session, the Finance Ministry answered the question about ₹500 currency notes being demonetized and ₹1,000 to be reintroduced in the market or not.
Pankaj Chaudhary, Minister of State for Finance, answered the question and instantly denied the demonization of the ₹500 currency notes, which are the highest denomination after ₹2,000.
“According to the RBI, the withdrawal was a currency management operation planned to avoid any inconvenience to the public or any disruption in the economy. Further, withdrawal of ₹2000 banknotes has been factored in, in the current year’s requirement and sufficient buffer stock of banknotes in other denominations is being maintained across the country to meet exchange/withdrawal requirements,” said MoS Finance in regards to the reintroduction of ₹1,000 currency notes in circulation.
According to the provided information, the government affirms that there is an ample reserve of banknotes in various denominations across the country, even after the discontinuation of ₹2,000 currency notes. As a result, there are no current plans to reintroduce ₹1,000 notes into the economy.
The response suggests that following the withdrawal of ₹2,000 currency notes, the government has taken measures to maintain a substantial buffer stock of banknotes in different denominations throughout the nation. As a direct consequence of this action, the authorities have explicitly clarified that there are no intentions of reintroducing ₹1,000 notes into economic circulation. This move highlights the government’s commitment to managing the currency supply effectively and ensuring a smooth monetary transition.