Banknotes supplied from printing presses to RBI are properly accounted for: RBI

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| Photo Credit: NAGARA GOPAL

The Reserve Bank of India (RBI) said it has come across reports circulating in certain sections of the media alleging missing banknotes printed by banknote printing presses, and emphasised that these reports are not correct. “These reports are based on an erroneous interpretation of information collected under the Right to Information Act, 2005 from the printing press,” officials said.

It may be noted that all banknotes supplied from printing presses to RBI are properly accounted for. It is further informed that there are robust systems in place for reconciliation of banknotes printed at the presses and supplied to RBI which include protocols to monitor production, storage and distribution of banknotes. Members of the public are, therefore, requested to rely on the information published by RBI from time to time in such matters, they added.

Earlier on May 19, RBI decided to withdraw the ₹2,000 denomination currency notes from circulation, but said it will continue to remain as legal tender. However, RBI has advised banks to stop issuing ₹2,000 denomination banknotes with immediate effect. People can exchange or deposit their ₹2,000 notes in bank branches and regional branches of RBI. A non-account holder also can exchange ₹2000 banknotes up to a limit of ₹20,000 at a time at any bank branch.September 30 has been decided as the last date for the purpose of completing the exercise in a time-bound manner and to provide adequate time to the public.

RBI is likely to revisit the September deadline based on the situation going ahead. The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. The objective of introducing ₹2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of ₹2000 banknotes was stopped in 2018-19.T

he total value of these banknotes in circulation had declined from ₹6.73 lakh crore at its peak of March 31, 2018 (37.3% of Notes in Circulation) to ₹3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. It was also observed that this denomination is not commonly used for transactions.