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The finance ministry on Monday said there is no proposal to extend the deadline for the exchange of 2,000 notes beyond September 30, 2023.

A woman holds <span class=
A woman holds 2000 notes as she exchanges demonetised notes at a bank in Chennai.(AFP File Photo)

In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary replied in negative to a question about whether there is a proposal to extend the deadline for the exchange of 2000 in banks beyond September 30.

“At present, this matter is not under consideration,” the minister said.

Chaudhary also replied in negative to another question about whether the government is planning to demonetise other high-denomination currency notes to eliminate black money.

The Reserve Bank, in a surprise move, on May 19 announced withdrawal of 2,000 notes from circulation but gave public time till September 30 to either deposit such notes in accounts or exchange them at banks.

According to the RBI, as much as 76 per cent of the 2,000 currency notes in circulation have either been deposited or exchanged at banks.

In value terms, 2,000 notes in circulation have come down to 84,000 crore as on June 30 from 3.56 lakh crore on the day of the announcement of withdrawal on May 19.

RBI said 87 per cent of the notes returned have been deposited in bank accounts by public while the remaining 13 per cent were exchanged by them in other denominations.

The minister further said that according to RBI, the withdrawal was a currency management operation planned to avoid any inconvenience to public or any disruption in the economy.

Further, withdrawal of 2000 banknotes has been factored in, in the current year’s requirement and sufficient buffer stock of banknotes in other denominations is being maintained across the country to meet exchange / withdrawal requirements.

The 2,000 denomination banknotes were introduced on November 10, 2016 to expeditiously meet the currency requirement of the economy post demonetisation of all 500 and 1,000 banknotes in circulation at that time.

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