The Reserve Bank of India (RBI) made a significant announcement on May 19 regarding the withdrawal of the highest denomination currency note in circulation, the Rs 2,000 note. While reaffirming its status as legal tender, the central bank stated that existing Rs 2,000 notes could be deposited or exchanged in banks until September 30, with a limit of Rs 20,000 per transaction. Advising the public to deposit these notes into their bank accounts or exchange them for other denominations, the RBI also instructed banks to cease issuing Rs 2,000 notes immediately. Effective from May 23, individuals can exchange Rs 2,000 banknotes up to a maximum of Rs 20,000 at any bank.
The RBI’s announcement triggered a surge of reactions on media, particularly on social media. Following the announcement, social media became a hub of speculation, with many drawing comparisons to the massive demonetisation effort in 2016. Experts argue that equating the withdrawal of Rs 2,000 notes with the 2016 note ban is fundamentally flawed. However, this development has provided an opportunity for reflection on the far-reaching implications of demonetisation.
Want to know more? Here’s a collection of Frontline stories that can help you gain a holistic view of India’s note ban and its impact on various sectors within the country..