RBI Governor Debunks Rs 1000 Note Comeback Speculations

New Delhi: RBI Governor Shaktikanta Das has dismissed speculations about the reintroduction of Rs 1,000 notes following the surprise withdrawal of Rs 2,000 notes. Addressing the media, Das clarified that there is currently no proposal to bring back the Rs 1,000 denomination.

The decision to withdraw the Rs 2,000 notes was announced by the RBI last Friday, sparking rumours that the Rs 1,000 notes might also make a comeback. However, the Governor confirmed that such speculation is unfounded.

The RBI’s decision to withdraw the Rs 2,000 notes was based on the fact that they were introduced to meet the immediate currency requirement after the demonetization of Rs 500 and Rs 1,000 notes in 2016. With an adequate supply of lower denomination notes now available, the purpose of the Rs 2,000 notes has been fulfilled. The printing of these notes had already been stopped in 2018-19.

Approximately 89% of the Rs 2,000 notes were issued before March 2017 and were approaching the end of their estimated lifespan of 4-5 years. The total value of these notes in circulation has decreased significantly since its peak in March 2018, constituting only 10.8% of the total currency as of March 2023. The RBI has encouraged the public to deposit or exchange these notes by September 30, although they will still be considered legal tender.

Governor Das expressed confidence that the majority of the Rs 2,000 notes will be returned by the September 30 deadline. He assured the public that there is no cause for concern regarding the availability of currency, as there are ample stocks of printed notes in circulation managed by both the RBI and banks’ currency chests.

Furthermore, Das emphasized that the existing income tax requirement, which mandates the furnishing of PAN for deposits of Rs 50,000 or more, will continue to apply for deposits of the withdrawn Rs 2,000 notes.