Will RBI re-introduce demonetized ₹1000 notes? RBI Governor reveals

RBI Governor Shaktikanta Das has said that there is no proposal to reintroduce 1000 rupee notes. During a conversation with reporters on May 22, he dismissed the claims by calling it 'speculative'. He was responding to questions related to the withdrawal of 2000 rupee notes that was announced by the RBI on May 19. 

When asked about the claims of reintroducing Rs 1000 notes, Das replied, "That is speculative, there is no such proposal as of now." Earlier in the day, the RBI Governor calmed the public by busting several myths about the withdrawal of Rs 2,000 notes, which was introduced in 2016 to make up for the demonetization of Rs 500 and Rs 1,000 banknotes. 

Don't rush to banks: RBI Governor urges people

Confirming that Rs 2000 notes will continue to remain legal tender even after withdrawal, Das urged people not to rush to the banks as there is sufficient time to deposit or replace them. The RBI said that those in possession of Rs 2000 notes can exchange them in other denominations before September 30 at any bank branch.

In its release, the RBI announced that the notes are being withdrawn from circulation as there is an abundance of Rs 500 and Rs 100 notes. Another reason was the denomination completing its life span as a result of which its printing stopped. The amount of Rs 2000 notes has dropped from its peak of Rs 6.73 lakh crores to about 3 .62 lakh crores, Das said.

As for the impact of the withdrawal, the Governor said that it would be "very very marginal" since Rs 2000 notes only make up around 10% of the currency in circulation. He also said that the RBI has been following a clean note policy where notes of a particular series are withdrawn and fresh ones are issued from time to time.