New Delhi: The Reserve Bank of India (RBI) has issued an order to withdraw Rs.2000 notes from circulation and it is nothing to worry about. Though opposition and government critics were quick to denounce the move, thinking they could spread panic across the country like how they did after demonetization drive, the RBI’s decision had little effect on common people.
First of all, the withdrawal of Rs.2000 notes is not the same as demonetization. The currency will continue to be legal tender, which means you can still exchange Rs.2000 notes in exchange for goods and services.
Secondly, the RBI has given ample time for the people to deposit the money in their accounts or exchange the Rs.2000 notes with lesser denominations from banks. The central bank has given time till September 30 for this. Till that time, the currency is legal tender.
Thirdly, Rs.2000 notes are not in much circulation as compared to Rs.500 or Rs.200 notes. According to RBI the Rs.2000 denomination in circulation is only 10.8% of the total notes in circulation. Therefore, withdrawal of this currency note does not affect the common man who uses the lesser denominations for payments.
Besides, online transfer of money has become common place in the country with a huge majority using it. In 2022 alone, the total UPI transaction value constituted 86% of the country’s GDP. It is estimated that 2,348 online transactions take place in a second. Thus withdrawal of Rs.2000 will have no effect on Indian citizens’ payment needs.
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