While it has been decided to withdraw the 2000 rupee note, which is the highest value currency in India, people have been given time till september 30 to exchange their 2000 rupee notes. How much will this affect the indian economy..? Why was the 2000 rupee note withdrawn..?: In 2016, after the banning of old 500 and 1000 rupee notes overnight, it introduced the 2000 rupee note in a plan to ensure adequate cash flow among the people and speed up the cash crunch. It stopped printing the 2000 rupee note years ago. After this, the RBI, which gradually reduced the circulation of the 2000 rupee note, has now instructed to completely remove the 2000 rupee note from circulation.
Why is it announced now..?: Why central government or RBI is removing the 2000 rupee note from circulation..? What is the reason for this..? Not explained. But many market analysts say that with the coming state and general elections, liquidity will increase and therefore a good decision has been taken to control this, said Rupa Regi, Chief Economist at L&T Finance Holdings. In a statement issued by the RBI, it has been announced to withdraw Rs 2000 notes from circulation as per the Clean Note Policy of the Reserve bank of India. Clean Note Policy is a policy designed to provide quality currency notes to people.
Business Today reported that RBI officials have said that Rs 2000 has been withdrawn under the Clean Note Policy due to the high number of counterfeit notes in India's Rs 2000 notes. In this situation, 2000 rupees more is hoarded and it will be a huge burden for the people. Will economic growth be affected? : Around Rs 3.62 lakh crore worth of Rs 2000 notes are in circulation in India, which is 10.8 percent of the total currency circulation. Economist Rupa Regi said that there will not be any major impact on currency circulation, and 50, 100, 200, and 500 rupee notes are insufficient circulation. Similarly in the last 6-7 years wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital money transfer has grown tremendously so there won't be any problem in this. But small businesses, cash flow intensive businesses such as agriculture, fertilizer, construction, 2nd and 3rd tier cities will suffer. At the same time, those who have a lot of Rs 2000 notes may buy high-value items to reduce their cash holdings faster. Economist Yuvika of Quantico Research said that there is a possibility of excessive money being invested in gold in particular. What is the impact on banks..?: Due to the circulation of Rs 3.62 lakh crore in Rs 2000 notes, the bank employees will be overburdened for the next few months. At the same time, due to excess money being deposited in the bank, the financial condition of the bank will improve and the financial circulation of the banks will increase.Who benefits..?: wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital money transfer services will now be mandatory in all sectors across the country. wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital money transfers will become important, especially in tier 2 and 3 cities. It is likely to increase the business and customer base of companies like Paytm, Phonepay, and google Pay. Will there be a fee..? When the high denomination notes are withdrawn from use, only 10, 20, 50, 100, 200, and 500 notes will be in circulation. In such a situation not everyone can use currency notes for all things. This will make UPI important at all levels, in such a situation if the central government imposes a fee on the UPI service, everyone will have no choice but to pay.
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