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Finance Ministry: No proposal to extend deadline for exchange of Rs 2,000 Notes

The finance ministry stated that there is no plan to postpone the deadline for exchanging Rs 2,000 notes until after September 30, 2023.

In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary replied in negative to a question about whether there is a proposal to extend the deadline for the exchange of Rs 2000 in banks beyond September 30.

The Reserve Bank unexpectedly declared on May 19 that it will stop printing Rs 2,000 notes, but it offered the public till September 30 to deposit the notes in accounts or exchange them at banks.

Up to 76% of the Rs 2,000 bills in circulation, according to the RBI, have either been deposited or exchanged at banks.

Value-wise, the amount of Rs 2,000 notes in circulation decreased to Rs 84,000 crore as of June 30 from Rs 3.56 lakh crore on May 19, the day the cancellation announcement was made.

The public deposited 87% of the returned notes in bank accounts, according to the RBI, while they exchanged the remaining 13% for notes of other denominations.

The withdrawal was a currency management operation aimed to prevent any annoyance to the people or interruption of the economy, according to the RBI.

A adequate buffer stock of banknotes in various denominations is being kept across the nation to meet exchange and withdrawal requirements, and the withdrawal of Rs 2000 banknotes has been taken into account in the current year’s requirement.

On November 10, 2016, the Rs 2,000 denomination banknotes were released in order to quickly address the economy’s currency needs following the demonetisation of all Rs 500 and Rs 1,000 banknotes in use at the time.

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