Exchange limit, only 10 notes at a time.
Nawanshahr/Punjab: Once bitten twice shy! Exchange limit is only 10 notes at a time could scare black money holders!
A renowned social activist Ashwani Joshi from Nawanshahr said that move to withdraw rupee 2000 from Public circulation may seems like “Clean Note Policy” but could have many good reasons.
This time, however, the move is expected to be less disruptive as this forms approximately only10 % against the nearly 80% at the time of demonetisation currency. More over you have from May 23 to Sept 30 to deposit these notes in your bank account or exchange them for other denominations while tender value not affected.
Clean Note Policy
A policy adopted by RBI to ensure availability of good quality banknotes to the members of public – government might have decided to withdraw the Rs 2000 denomination banknotes from public circulation, most of which are now aged 5 year and more.
Impact on General Election 2024
Joshi said that taking such action ahead of the general elections is a wise decision, people who intended using these notes as a store of value may face inconvenience in election corruption.
Gold sales may rise. With the p who are holding these ‘notes’ with them only to make purchases rather than deposit them in bank accounts, could bring some spurt in discretionary purchases such as gold.
Banking liquidity to improve.
With all the 2000-rupee notes coming back in the banking system, we will see a reduction in cash in circulation and that will in turn help improve banking system liquidity.
This denomination is no longer commonly used for transactions; besides, there is adequate stock of banknotes in other denominations to meet currency requirements.
However political critic leaders are expected to oppose this move but it will silence with the end of monsoon, Joshi concluded humorously.