2000 Note Ban Essay
Rs. 2000 denomination banknote was first introduced in November, 2016 to fulfil the currency requirement after withdrawingRs. 500 and Rs. 1000 currency notes. The sudden cancellation of Rs. 500 and 1000 notes created huge crisis of Indian currency note in economical market. So, Rs. 2000 denomination was introduced in Indian economy as per section 24(1) of RBI Act, 1934. After the availability of banknotes in other Indian denomination printing Rs. 2000 notes was stopped in 2018-19. Rs.2000 notes were printed majorly and issued last in march, 2017 after which using this denomination had been stopped for any common transactions. To maintain the ‘clean note policy’ of Indian economy it was further decided to withdraw Rs. 2000 denomination banknotes from circulation. To implement the decision effectively, many action plan and financial initiatives had been taken later which will be discussed in this article.
Initiatives regarding 2000 denomination:
All banks were ordered to stop issuing Rs. 2000 banknotes with immediate effect as per the legal notice. All ATMs and cash recyclers were reconfigured with other currency notes after that accordingly. Bank ensured not allowing Rs. 2000 banknote issuing in any transaction not even from currency chests with the condition of dispatching from RBI offices. Banknotes received by all banks through this process will be sorted in short time through note sorting machines for maintaining accuracy and genuineness. Banknotes were deposited in currency chests with the linkage scheme and was kept ready for dispatching from any issue office of RBI. The detailed instruction of all the legal actions for finalising action plan contained in master direction of 3 April, 2023 to report and monitor counterfeiting notes. People can have the facility of depositing or exchanging Rs. 2000 banknotes up to 30 September, 2023. The procedure will be done without restrictions along with know your customer norms and other statutory requirements. All the banks are required to comply with suspicious transaction reporting and cash transaction reporting wherever needed and applicable. To avoid inconvenience and disruption, ensure operational convenience for the regular banking activities all banks will limit Rs. 2000 transaction up to Rs. 20,000 at a time. Customers can visit their respectable branches for exchanging or depositing Rs. 2000 note from 23 may, 2023. For availing this facility banks may open the facility of mobile vans in remote or unbanked areas. To credit the value of Rs. 2000 note in Jan DhanYojna accounts and basic savings bank accounts usual limits will be applicable for mutatis mutandis.
Conclusion:
Exchanging and depositing the present rs. 2000 banknotes to nearest bank branches is going to be another initiative to economic concern. People are going to experience another step for maintaining their flourisjing economy overall. All citizens should cooperate with the regular norm and policies for making the initiative successful. People should follow the legal notice and instruction module to follow the action appropriately. Their cooperation is being expected by banks. Public must remember that they can contact any concerned issue office of RBI for any of their arising difficulties in exchanging and distribution banknotes.
Also See: Essay on Demonetization