Try GOLD - Free
Withdrawal of Rs 2000 notes to boost deposits, consumption
The Business Guardian
|June 20, 2023
Though the Reserve Bank of India may have decided to withdraw Rs. 2000 banknotes from circulation as a part of its currency management, the move is likely to boost various macroeconomic parameters.
-
On 19 May, 2023, the RBI decided to withdraw the Rs 2000 denomination banknotes from circulation but said they would continue to remain legal tender. However, the RBI has advised banks to stop issuing such banknotes with immediate effect. The Rs 2000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934, primarily to meet the currency requirements of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time.
The objective of introducing Rs. 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs. 2000 banknotes was stopped in 2018–19.
SBI Research, in a report, analysed and argued how the withdrawal of Rs 2000 banknotes could boost bank deposits, repayment of loans, consumption, the RBI’s retail digital currency usage, and overall economic growth.
The other day, RBI Governor Shaktikanta Das said 50 percent of the to-be-withdrawn Rs 2,000 notes had already come back to the system after the May 19 announcement, and of those, 85 percent were through bank deposits.
This story is from the June 20, 2023 edition of The Business Guardian.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM The Business Guardian
The Business Guardian
MAHE Bengaluru hosts Open House 3.0 on futuristic learning
The Manipal Academy of Higher Education (MAHE), Bengaluru, came alive with energy, colour, and curiosity as it hosted the third edition of its flagship event, Open House 3.0, at the Yelahanka campus.
1 min
November 10, 2025
The Business Guardian
Home-cooked thali costs drop sharply on cheaper veggies and pulses
Costs of home-cooked vegetarian and non-vegetarian thalis declined 17 per cent and 12 per cent year-on-year in October, respectively, primarily because of a steep decline in the prices of vegetables and pulses, according to Crisil Intelligence's latest Roti Rice Rate (RRR) report.
2 mins
November 10, 2025
The Business Guardian
Commerce Department ends special cleanliness, efficiency drive
The Department of Commerce successfully concluded the Special Campaign 5.0 for the disposal of pending references, held from 2 October to 31 October 2025:The campaign focused on promoting cleanliness, improving work efficiency, and addressing pending grievances across the Department, its Public Sector Undertakings (PSUs), and affiliated organisations.Through this initiative, efforts were made to streamline administrative processes, ensure the timely resolution of issues, and enhance workplace management and hygiene standards.
1 min
November 10, 2025
The Business Guardian
CREDIT CARD SPENDING JUMPS 23% TO Rs 2.17 LAKH CRORE IN SEPTEMBER
Credit card spending in India surged 23% year-on-year to Rs 2.17 lakh crore in September 2025, driven by festive demand, GST cuts, and rising card usage, according to CareEdge.
2 mins
November 10, 2025
The Business Guardian
Dreamforce 2025: Dawn of the ‘Agentic Enterprise’: A New Era of Human-AI Collaboration
At Dreamforce 2025, the annual customer conference, Salesforce delivered a powerful and clear message: the future of work isn’t about replacing people with artificial intelligence, it’s about amplifying them.
1 min
November 10, 2025
The Business Guardian
THE ARCHITECT BEHIND THE ARAB WORLD'S RISING DIPLOMATIC POWER
A new generation of Arab leadership is reshaping the region’s role in global conflict resolution, led by Mohammed Ahmed Al Yamahi.
6 mins
November 10, 2025
The Business Guardian
TIFFIN TALES: THE EVERYDAY ART OF INDIAN LUNCHBOXES
Every morning across India, an unsung ritual unfolds in millions of homes — the packing of the tiffin.
2 mins
November 10, 2025
The Business Guardian
India's forex reserves dip to $704.9 bn
India’s foreign exchange reserves declined by USD 5.623 billion in the week that ended October 31 to USD 689.733 billion, driven by a slump in both foreign currency assets and gold reserves, the Reserve Bank of India’s latest ‘Weekly Statistical Supplement’ data showed.
1 mins
November 10, 2025
The Business Guardian
Agravatam Ayurvedic Cloud Kitchen launches 2026 food challenge in Ahmedabad
Agravatam India›s First Modern Ayurvedic cloud Kitchen, the Ahmedabad heritage city’s pioneering Modern Ayurvedic Cloud Kitchen, is inspiring Ahmedabad to begin 2026 with vibrant health, mindful eating, and a joyful return to wholesome food traditions through its newly launched 2026 #Ayurvedic Food Challenge, rolled out across social, streaming, and digital platforms.
1 min
November 10, 2025
The Business Guardian
FROM DIASPORA DEBATE TO CIVIL-RIGHTS CATEGORY: HOW CASTE POLITICS WENT MAINSTREAM IN AMERICA
The first mainstream exposure of caste discrimination in the United States came through the tech industry. In June 2020 the California Civil Rights Department (CRD) filed a suit against Cisco Systems, alleging that two Indian managers harassed and retaliated against a Dalit engineer after he complained about caste-based discrimination.
9 mins
November 10, 2025
Translate
Change font size