RBI not thinking of withdrawing ₹500, re-introducing ₹1,000 notes: Governor
In the latest MPC meeting, Reserve Bank of India governor Shaktikanta Das announced to keep the repo rate unchanged at 6.5%.
Addressing the Post Monetary Policy briefing on Thursday, Reserve Bank of India governor Shaktikanta Das said that there is no intention to remove ₹500 banknotes or reintroduce ₹1,000 denomination notes at this time, calling it speculation. This comes after the central bank recently asked that holders deposit or exchange their ₹2000 notes.
"RBI not thinking of withdrawing ₹500 notes, or re-introducing notes in ₹1,000 denomination; request public not to speculate," said Das.
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RBI governor on ₹2000 notes
Talking to reporters, the RBI governor informed that ₹1.80 lakh cr of ₹2,000 notes, representing nearly half of the outstanding notes in the withdrawn denomination, have returned back.
Governor Das also appealed to not rush for depositing the notes at the last moment. “I would like to request the public to go to bank branches to deposit or exchange ₹2,000 currency notes at their convenience. There is no reason to rush. Please do not rush in the last 10-15 days of September.” (ALSO READ: What will happen to ₹2000 notes after September 30?)
He further added that approximately 85 per cent of ₹2,000 notes that have come back are as deposits to banks, which is in line with expectations.
What happened in the RBI Monetary Policy meet
In the latest MPC meeting, RBI announced to keep the repo rate unchanged at 6.5%. It said to remain focussed on withdrawal of accommodation of policy stance. (ALSO READ: Repo rate, inflation and GDP: What did RBI's Monetary Policy Committee say today)
The retail inflation forecast has been reduced to 5.1% from 5.2% earlier. Headline inflation remains over the 4% objective and is expected to remain so for the remainder of the year.
