₹500 Note Update: The demonetization of ₹2000 notes was recently done in the country, and the deadline for their exchange or deposit was fixed up to the end of September. Meanwhile, the government has now issued a major update with respect to the ₹500 notes.
Will the ₹2000 Note Exchange Deadline Be Extended?
On Monday, the Finance Ministry announced no proposal in consideration to extend the deadline beyond September 30, 2023, for the exchange of ₹2000 notes. When probed further in the Lok Sabha about possibilities of any extension in the deadline, Minister of State for Finance, Pankaj Chaudhary, replied in writing that the matter is currently not up for consideration.
Is the government going to withdraw other higher-value notes?
Another question raised in the Lok Sabha asked whether the government plans to withdraw other high-value currency notes from circulation to check black money. Chaudhary clarified the stand of the government, however, the Finance Ministry made a heavy statement concerning the currency in the country, raising a speculated question on whether the government is going to withdraw ₹500 this soon. The minister further stated clearly, “This matter is not currently under consideration.”
Government Response on the ₹500 Note
The ₹500 note, according to the Finance Ministry, is the most widely circulated note in the country. The Ministry also clarified that there was no question of withdrawing the ₹500 note, but the public would be properly informed beforehand if such a decision were to be made.
Ruling for Withdrawal of ₹2000 Notes
On the 19th of May, the RBI made a surprise announcement withdrawing the ₹2000 notes from circulation, leaving the public till September 30 to get them deposited or exchanged in banks for their convenience.
How many ₹2000 notes were actually withdrawn?
According to RBI, nearly 76% of the ₹2000 notes in circulation were deposited or exchanged for other notes by the public. The value of ₹2000 notes in circulation dropped on June 30 from ₹3.56 lakh crore on May 19 to merely ₹84,000 crore.
RBI Report and Procedure
According to RBI, 87% of returned notes had been deposited in bank accounts, while the remaining 13% exchanged for other notes. The Minister also stated that, according to the RBI, the withdrawal of ₹2000 notes was an exceptional currency management measure undertaken to obviate any inconvenience to the public and adverse impact on the economy.
From 2016 Demonetization to Present
As it is believed, the much-hyped decision of demonetization was taken by the Modi government in 2016 when new ₹2000 and ₹500 notes had been issued. Now that ₹2000 notes have been discontinued again, ₹500 is the largest currency note in circulation in the country.
