‘Misinterpretation of RTI information’: RBI dismisses reports of missing notes

New Delhi: The Reserve Bank of India (RBI) has received reports circulating in certain sections of the media alleging the disappearance of banknotes printed by banknote printing presses. RBI says that these reports are not correct. “These reports are based on misinterpretation of information collected from printing presses under the Right to Information Act, 2005,” the officials said. It may be noted that all bank notes supplied to RBI from the printing presses are properly accounted for.

It is also informed that there are robust systems in place for reconciliation of banknotes printed in the presses and supplied to the Reserve Bank of India, which include protocols for monitoring the production, storage and distribution of banknotes. He said that members of the public are requested to rely on the information published by RBI from time to time in such matters.

Earlier on May 19, the RBI decided to withdraw currency notes of Rs 2,000 denomination from circulation but said it would remain as legal tender. However, the RBI has advised banks to stop issuing banknotes of Rs 2,000 denomination with immediate effect. People can exchange or deposit their Rs 2,000 notes at bank branches and regional branches of RBI. A non-account holder can also exchange Rs 2000 bank notes at any bank branch up to a limit of Rs 20,000 at a time.

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In order to complete the exercise in a time-bound manner and to give sufficient time to the public, September 30 has been fixed as the last date. RBI may revisit the September deadline depending on the situation going forward.

The Rs 2000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, primarily to accelerate the currency requirement of the economy after the withdrawal of legal tender status of all Rs 500 and Rs 500 denominations. 1000 notes were in circulation at that time to meet the demand.

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The purpose of introducing Rs 2000 banknotes was served once banknotes of other denominations became available in sufficient quantity. That’s why the printing of 2000 rupee notes was stopped in 2018-19.
The total value of these banknotes in circulation fell from Rs 6.73 lakh crore at its peak on March 31, 2018 (37.3 per cent notes in circulation) to Rs 3.62 lakh crore, which is only 10.8 per cent of notes in circulation as on March 31. The percentage was 2023. It is also observed that this denomination is not commonly used for transactions.