The Reserve Bank of India (RBI) has brought some relief for those who haven’t yet deposited their ₹2000 notes. Let’s delve deeper into the story.
Background
Due to consecutive holidays, banking operations were stalled. This majorly affected people’s ability to adhere to the last date for depositing ₹2000 notes, which was initially set for 30th September.
The RBI Timeline:
- Initial Announcement: A few months ago, the RBI had announced its plan to phase out ₹2000 notes and urged the public to deposit them back in banks.
- Latest Update: In light of the recent banking holidays, the last date for depositing these notes has now been extended by a week.
Key Statistics:
- Amount Returned: As of 31st August 2023, the total value of ₹2000 notes returned to the banks amounted to a whopping ₹3.32 lakh crores.
- Amount in Circulation: However, data reveals that nearly ₹24,000 crores worth of these notes were still in circulation as of 31st August 2023. Interestingly, 93% of the total issued notes have made their way back to the RBI.
Reason for the Extension:
- Banking Holidays: Successive holidays, including Ganeshotsav, Eid, the weekend, followed by Gandhi Jayanti, gave banks an extended break. This, combined with the anticipation of huge crowds in banks during the last days, might lead to chaotic situations.
- Public Convenience: Recognizing the challenges faced by the public, the RBI made the decision to extend the date, ensuring smoother operations and less rush.
What’s Next?
- New Deadline: RBI has now set 7th October as the new deadline for depositing ₹2000 notes.
- Unanswered Questions: Yet, it remains to be seen how many of the outstanding ₹24,000 crores worth of notes will return by this new deadline. Furthermore, questions will arise regarding the fate of the notes that remain undeposited after this date.
Final Thoughts: While the RBI’s decision has been a relief to many, it also underscores the challenges of phasing out currency denominations, especially when it comes in tandem with unplanned extended bank holidays. However, the end result and the aftermath of this move will be keenly watched by experts and commoners alike.