The Reserve Bank of India has extended the deadline for returning the country’s highest value banknotes for another week, as billions of rupees’ worth remained in circulation. The 2,000-rupee note was ordered to be withdrawn on May 19, with a deadline until the end of September for people to exchange or deposit 3.56 trillion rupees at banks. However, as of Friday, 140 billion rupees worth of notes remained unaccounted for. The central bank stated that it will continue to monitor the situation and will take necessary steps to “safeguard the interest of the public.”
Despite the efforts of the Reserve Bank of India, a significant amount of the 2,000-rupee notes have not been returned within the given timeframe. The decision to extend the deadline by one week indicates the challenges faced by the government in managing the demonetization process. The unaccounted 140 billion rupees raises concerns about the effectiveness of the policy, as it implies there may be instances of hoarding or black money that have evaded detection. This situation has prompted the central bank to emphasize its commitment to protecting public interests and maintaining the stability of the banking system.
The extension clearly signals the urgency to bring the unaccounted notes back into the banking system, as their continued circulation poses risks to the economy. The Reserve Bank of India’s decision to closely monitor the situation reflects the need for strict vigilance in combating illicit activities and ensuring the smooth flow of legitimate funds. While the demonetization exercise aimed to tackle corruption and illicit wealth, the remaining unreturned currency notes highlight the complexity of removing black money from the system. As the country navigates these challenges, it becomes crucial to strike a balance between the inconvenience faced by the public and the desired outcomes of the demonetization drive.