For those who were anxiously awaiting the news of being able to exchange their ₹2000 denomination notes, here’s some good news – if reports are to be believed.
RBI Considers Extension
It was previously announced by the Reserve Bank of India that the ₹2000 notes, a denomination introduced as part of a currency overhaul, would cease to be legal tender from September 30. However, there is news suggesting that the central bank might extend this deadline by another month. Senior officials involved in the confidential discussions have reportedly stated this unofficially.
Consideration for Overseas Indians
The decision to extend the deadline for the circulation of ₹2000 notes might be taken, especially considering Indians residing abroad, allowing them to exchange these notes. The extension could possibly last until the end of October.
The Central Bank had withdrawn 2,000 rupee notes worth 3.32 lakh crores or 93 percent of the currency in circulation as of September 1, as per reports.
Banking System Returns
By the end of July 31, banking notes worth 3.14 lakh crores or 88 percent of the currency in circulation, which is 88 percent of the ₹2000 notes, had returned to the banking system.
In discussions with some experienced bankers, they have indicated that the central bank might extend the deadline by another month with the aim of recouping 100 percent of the ₹2000 notes in circulation.
Relief for Worried Citizens
This news should bring relief to those who were worried about the deadline to exchange their ₹2000 denomination notes being around the corner.