Reserve Bank of India (RBI) governor Shaktikanta DasReserve Bank of India (RBI) governor Shaktikanta Das said there was no crowd at the banks while addressing a Q&A session at the Confederation of Indian Industry’s (CII) Annual session.
He also said there is no major issue with regards to the withdrawal of Rs 2,000 note and the note has completed its life cycle. He added any high denomination currency in circulation can cause other collateral issues.
The RBI governor further said that it won't be a surprise if India's GDP growth rate crosses 7 per cent in 2022-23. He also said that the war on inflation is far from over and that the government needs to keep a watchful eye on the impact of El Nino.
Das was addressing the plenary session at the Confederation of Indian Industry’s (CII) Annual session today. The governor’s address comes amid much uncertainty over the exchange and deposit of Rs 2,000 notes at banks.
Various banks have introduced their own measures despite the RBI’s instructions to banks on accepting Rs 20,000 for exchange or deposit after the withdrawal of Rs 2,000 banknotes. While a private lender said it is not seeking any additional forms for exchange Rs 20,000 at a time, some private banks have said that any customers who do not bank with them will have to produce an ID proof for exchange of Rs 2,000.
Here are the latest updates on the Governor's CII address on BusinessToday.In
RBI Governor Shaktikanta Das said that the central bank found through informal surveys that the Rs 2,000 note was not being commonly used.
Shaktikanta Das said that the Rs 2,000 note had completed its life cycle and had to be taken out. He added high denomination currency remaining here and there can create other collateral issues.
RBI boss Shaktikanta Das said that no major crowds were there at the banks yesterday. He added no major issues or concerns have come up as of now.
The total no of digital transactions were about 2.28 crore per day in 2016, Shaktikanta Das said. He further said the latest data is that it is 37.75 crore digital transactions per day. Within this, UPI records a nearly 29.5 crore daily transactions, he noted.
We are fine tuning our architecture for use of CBDC, RBI governor Shaktikanta Das said at the CII event.
The RBI boss said that fintech sector and digital lending is on the top of the central bank's agenda.
Das said that institutions like the IMF have realised that it is within the rights of emerging economies to build up reserves and took our foreign exchange reserves to a peak. During COVID there was surge of outflows and we had to intervene, he added.
RBI governor Shaktikanta Das said, "I would like to assure that adequate liquidity is made available for meeting the productive requirements of economy".
The RBI boss said that the central bank's approach and endeavour has been to be prudent, proactive and to act in time.
Shaktikanta Das said that we have witnessed black swan events one after the other such as the COVID-19 pandemic and the Russia-Ukraine war. He further stated that Indian business responded with resilience and utilised this challenge to improve and strengthen its inherent resilience.
The RBI boss said that we will have to keep a close watch on El Nino and see how that plays out. He added that the war on inflation is not over yet and there is no cause for complacency.
Shaktikanta Das said that the government gave a figure of 6.5 per cent for 2023-24 whereas the International Monetary Fund (IMF) has given a lower projection. Das added the government derives confidence from agriculture, services, and exports sectors while adding the capex and infrastructure spending has also picked up well.
The RBI Governor said that if last year's gross domestic product (GDP) comes at above 7 per cent, then one should not be surprised.
RBI Governor Shaktikanta Das said while addressing the CII event that any decision related to monetary policy is not in his hands and that he is driven by situation on the ground and inflation levels. He further emphasised that this is not a pause but a pivot.
- The RBI issued a high denomination note of Rs 2,000 at the time of demonetisation in 2016 since withdrawal of currency impacted 86 per cent of the total currency in the system.
- Though it was introduced with the intention of pushing more currency into the system, the Rs 2,000 note encouraged the hoarding of high denomination notes.
- The Rs 2,000 note will continue to maintain its legal tender status.
- Members of the public can continue to use Rs 2000 banknotes for their transactions and also receive them in payment. However, they are encouraged to deposit and/or exchange these banknotes on or before September 30, 2023.
- Members of the public may approach bank branches for deposit and/or exchange of Rs 2000 banknotes held by them. The facility for deposit into accounts and exchange for Rs 2000 banknotes will be available at all banks until September 30, 2023.
RBI Governor Shaktikanta Das will soon address the plenary session at the Confederation of Indian Industry (CII) Annual Session at 10:37 am
