Shaktikanta Das, the governor of the RBI, said on Wednesday that the bank was closely monitoring the deposits and exchanges of Rs 2,000 notes and expressed optimism that all will go well.
“There was no crowd anywhere on Tuesday. And we keep a close eye on the situation. He said to business leaders, “I don’t think there is any huge concern or issue that is coming out…business operations are going on.
The Reserve Bank of India (RBI) said last week that it will stop accepting Rs 2,000 notes until September 2023, after which the high-value note will continue to be accepted as legal cash. According to Shaktikanta Das, a four-month window has been given to make sure that no hardships are experienced. The central bank’s surveys had revealed that there were not many transactions using these notes, and he claimed that keeping high denomination notes in circulation “can create other collateral issues” because they had reached the end of their useful lives.
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Other actions by Shaktikanta Das:
The governor rejected doing away with several categories of licences for banks and non-bank finance organizations in response to a different query, asserting that each had a distinct function. Shaktikanta Das also claimed that following a comprehensive examination, the regulator granted licences to universal banks, allowing them to accept deposits made with public funds. “Due to a license, poor people, members of the middle class, and retirees invested their money. Small finance banks or NBFCs cannot be compared to banking licences, according to Das.
Monetization 2.0?
According to RBI, there is no issue as off now in regards of exchanging of notes at banks. Many people are calling this Monetization 2.0, however, the printing of 2000 Rupees notes was stopped after 2018 and the government warned that the high value notes are bound to be discontinued.
The relaxations for exchanging the notes has been pretty easy this time. The timeline is also well enough for people to exchange their notes. Let’s see if the relaxations are enough for people this time.
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