New Delhi: The Finance Ministry on Monday said that there is no proposal has surfaced which enables the extension of the deadline for exchanging of Rs 2,000 notes after September 30. The formation was revealed by Minister of State for Finance Pankaj Chowdhary in a written reply to a question in the Lok Sabha.
The minister was responding to an enquiry there is a proposal to extend the deadline for changing of Rs 2000 in banks after September 30.
Meanwhile, Chaudhary also responded to another question whether the government is planning to demonetise other high denomination currency notes to eliminate black money? A lot of things has been said about the currency in the Lok Sabha by the Ministry of Finance. Will the government soon scrap the Rs 500 note?
The minister responded saying, “At present this matter is not under consideration.”
500 note is the biggest currency at present
The Finance Ministry further said, “At present, Rs 500 note is the biggest currency.”
While giving detailed information on behalf of the Finance Ministry, it was told that at present there is no such plan of the government. If any planning will be done in this regard in future, then you will be informed about it.
Decision to withdraw 2000 note
Furthermore, in a surprise move, the Reserve Bank on May 19 announced the withdrawal of Rs 2,000 notes from circulation, but gave time till September 30 to the public to either deposit such notes in accounts or exchange them at banks.
According to the RBI, 76 per cent of the Rs 2,000 notes in circulation have either been deposited in banks or exchanged.
In terms of value, Rs 2,000 notes in circulation declined from Rs 3.56 lakh crore on May 19, the day the withdrawal was announced, to only Rs 84,000 crore as of June 30.
The RBI said that 87 per cent of the returned notes have been deposited in bank accounts by the public, while the remaining 13 per cent have been converted into other denominations.
The minister further said that according to the RBI, the withdrawal was a currency management operation that was planned to avoid any inconvenience to the public or any disruption to the economy.
It must be known that in the year 2016, the first major decision of the Modi government was demonetisation. Following which new denominations of Rs 2000 and Rs 500 fiat currency were introduced. The Rs 2000 denomination notes have now been withdrawn again.
