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-   -   RBI to withdraw Rs 2,000 notes from circulation; notes will continue as legal tender (https://www.team-bhp.com/forum/shifting-gears/265991-rbi-withdraw-rs-2-000-notes-circulation-notes-will-continue-legal-tender-4.html)

I know most people have their own reasons and believe it they dont have 2000 notes it
does not impact them, but in reality such moves impacts everyone and that too
adversely.

Here are the reasons as being justified to push another draconian masterstroke -

Black Money -

As per RBIs own report 99.3% currency was returned in 2016 Demonitization so it had no impact on capturing black money whatsoever.

Being withdrawn for Clean note policy -

In the past we have had many versions or even stoppage of 5 rs. notes changing of 10 rs or 50 rs notes without any fanfare or stupid restrictions, so this case definitely does not seem like Clean note policy as shared by RBI.

So I would leave it as anybodys guess on the timing (before 2024 elections or
after Karnataka elections) and the purpose which does not seem to be anything
logical for sure, does not look like a democratic or even public benefit decision to me.

Now the real impact.

Forget it being banned or withdrawn or demonitized, in reality no one is now accepting it
from my car cleaner to sweet shop to maid or driver.

I went to some banks and all were struggling and did not have enough 500 to exchange.

Now people who really have these are buying property, jewellery, furniture white goods
whatever they can (at a premium ?) driving up prices of these.

In fact whenever such things happen even honest people discard cash and move towards gold and real assets driving up prices and in turn inflation.

This impacts everyone.

So whether you have zero 2000 Rs. note or 10 or 100 it will impact YOU.

Agree. IMO, Last Demonetization was more to collect data as who owns how much in cash than anything else. The way indian system is, it was a forgone conclusion that cash will return but it gave RBI huge insights into people's finances.

Another benefit was it killed the ever booming counterfeit currency market and overnight turned everything into a paper. Off course, counterfeit currency is back but not at same level as earlier IMO.

At the moment, IT deptt is sitting on huge asset / cash data. Time to employ Big data analytics and get going after offenders.

Anyone hoarded black money or white money in 2000 Rs note doesn't deserve the money. Smart people would hoard it in foreign currency or Gold after 2016. Let me see Govt demonetize that.

Looks like the Karnataka result hit hard, this is an important step in preparation for the state elections later in the year.

Bold of you to assume competence and logical decision making from the national government ;)

I don't know what is it about the Indian state, but it has a unique tendency to invent rules/processes and to keep changing them, as if it gets some joy in confusing its own citizens, and ensuring that they keep running in circles, with the mai-baap sarkar as the ring-master of this circus.

I cannot for the life of me remember another place which 'demonetizes' currency notes for a big tamasha of ultimately no value, introduce 'temporary' currency to fix that invented problem, and then 'denotifies' the temporary currency, to fix the fix of the original non-problem.

Very soon they would realize they've done away with most high value currency (oops). Lower value currency is becoming worthless pretty quickly anyway.
Timing seems auspicious for another show of our great Indian rope trick.


Apart from being smart in a devilish way, why can't these people get a life?

End of rant.

personally,I am least bothered and I just dont have enough money :)

The deluge of Rs 2K notes by customers at fuel dispensing outlets has become intolerable for the latter. They have lately started refusing these notes.

https://twitter.com/ndtvfeed/status/...b8IJcOQYQ&s=19

This was bound to happen as we have also seen lots of WhatsApp messages in groups from many cities and towns, where the fuel outlets have also refused to accept these as legal tender.

Can't blame them, because at the end of the day their men will have to queue up in banks with wads of these.

An Economic Times report of today reveals that there are as on 31/03/2023 Rs 2K notes worth Rs 3.62 lakh crores in circulation according to RBI. RBI says that Rs 50K to Rs 100K crores are expected to enter the system effective 23/05 when banks will start accepting these notes. Let us wait and watch if the RBI expectations of Rs 50-100 K crore rupees or much more comes back to the banks.

The average person who wants to live in peace will have no peace of mind, if he has one or more Rs 2 K notes. Only after he struggles to get these deposited in a bank can he have peace of mind.

The above average persons who may be hoarding Rs 2K notes will by hook or by crook get each one of these exchanged as we have witnessed during the last aimless and misguided demonetisation exercise.The common man suffered and we saw more than a hundred people dying in the long queues.

Went through the official RBI circular. https://www.rbi.org.in/Scripts/BS_Ci....aspx?Id=12505

[Edit: It does say, "The facility for deposit and/or exchange of ₹2000 banknotes shall be available for members of the public up to September 30, 2023.". Missed the line earlier.]

It says, "The above instructions will be effective until September 30, 2023." Of course, this can be interpreted in any way. But it also implies that it will be reviewed closer to that date.

Two things are in conflict in the minds of people.
1. The notes will continue to be legal tender.
2. Banks will stop accepting Rs.2000 after Sep. 30, 2023

The clarification (hopefully from RBI) I would like to see is:
1. The notes will continue to be legal tender.
2. Only the 'Over the counter' exchange of notes will stop by Sep 30, 2023.
3. People can still deposit these notes in their bank accounts post that date.

But then that would defeat the very purpose. People will miss the pull to take the notes out of hibernation. The purpose of paper currency is to circulate in the economy. Just keeping it dormant will not serve the purpose. Paper money lying in locker will see it's value eroded due to inflation any way.

Seems the RBI circular served it's purpose. The notes that were not seen for years suddenly came back into circulation.

I was also curious about this, saw it in news yesterday hence asked. People who will go for exchange now will confirm, however ID/PAN should be mandatory for exchanging notes.

It’s just another stupid and useless move by the government. All that will be accomplished will be wastage of time of a common man. There is no benefit of this move. You can say whatever you want but I hard disagree with the statement that it will curb black money.

First demonetisation was a disaster. So many families got ruined in it. I request to please don’t make insensitive remarks by saying first demonetisation was for collecting data. What government did with that data?

A fellow member suggested a better solution of stopping the recirculation of 2000 rupee notes. Why all this hassle of making people stand in queues? Does government like lines that much? Also who are we kidding here by saying it will affect money hoarders, it will only affect the general public or small businesses up to a limited extent. Situation is better this time but it’s a useless hassle even bank personnel are not taking it seriously in many small or medium sized cities. Money is getting adjusted in so many forms and it be visible to the government because of their flawed policy implementation system.

The level of expertise in counterfeit notes was so authentic that even RBI and Banks could not gauge and differentiate between the original and counterfeit notes. How else do you think 99.3% notes reached back to RBI? In real world scenario, 99.3% figure can only be achieved in CBSE board exams, not in recollection of a currency in circulation in a 130 crore+ population country.

The way cash/assets have been managed through benami and shell entities, there is no data left to be analysed by the IT folks. The latest amendments anyway curtails the powers of IT dept to scan defaulters info beyond 3 assessment years.

About time we come out of Alice in Wonderland story and take a bitter shot of reality.

What we are told and what is the actual purpose of the move by the govt can be different at times.

Before 2016, our banknote paper, ink and printing machines came from abroad. Pakistan got hold of exact ingredients needed to print 500 and 1000 rupee notes. They were printing in bulk and were sending it to India through Nepal, Bangladesh, Myanmar etc. Best way to destabilize a country. There was even a rumour of hoardes of cash sized from a ship.

Now, all of our money is printed in India, but recently the credit offtake is at 16% while the deposit growth is at 8%. Maybe this move is to generate liquidity for banks.

Esteemed members please try to verify the statements I have made about 2016. I got this info online and not from many sources a few years ago. If you know anything about it, please let me know too.

But I know in 1998, RBI outsourced currency printing overseas for which they were grilled by the parliament later on because who's gonna check if the outsourcing companies aren't printing more than what's asked for.

Good question!
After collecting all the notes, RBI should remove the chips and give it our automakers, many cars' waiting period will come down.

Not sure how much stock to put in this but the only, albeit anecdotal, evidence I have is I was tutored by a man, who in his erstwhile professional career as a chemist was an executive at the firm that supplied the ink for some of the first security bills issued by the RBI (think it was the colour changing ink).

While I can understand that paper stock coming from elsewhere seems unlikely that the printing of fiat currency notes will be outsourced like this surely?!

On another note, if the average durability of notes in circulation in India is 4-5 years, how come there's no plans for polymer notes? While I imagine they're more expensive to make in the first place their durability is unmatched. You can't really tear them, they don't get wet. I'd imagine they'd be perfect for India. I've been a huge fan since the change was made in the UK to go all polymer notes. Has this not been considered and if so, what reasons were given for not going down this route?