Withdrawal of 2000 notes has no effect on the economy; But these three challenges remain: RBI Governor

On the withdrawal of 2000 notes, RBI Governor Shaktikanta Das says that it has not had any negative effect on the economy. The central bank aims to reduce retail inflation. However, challenges remain in front of the Indian economy like international stability and the possibility of the El Nino effect in the monsoon.

Jun 26, 2023 - 14:27
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Withdrawal of 2000 notes has no effect on the economy; But these three challenges remain: RBI Governor

Reserve Bank of India Governor Shaktikanta Das said that the withdrawal of Rs 2000 banknotes has not had any negative impact on the economy. Last month, on the 19th, an announcement was made by the central bank to withdraw Rs 2000 notes.
In an interview with the news agency PTI, the RBI governor said I want to say clearly that the withdrawal of Rs 2000 currency notes from circulation has not had any negative impact on the Indian economy.
The date till September 30 has been fixed by the RBI to replace the 2000 note with you. Any person can get a maximum of 10 notes i.e. Rs 20000 exchanged at a time. However, there is no limit for deposits in a bank account. There is no need to fill out any form or slip for this.
The RBI governor said that there are two to three major challenges facing the Indian economy at present. First - volatility in the international market, second - the effect of El Nino during monsoon and third - weather-related events, which have an impact on the price of food items in the country.
Das said that interest rates are directly related to inflation. To control inflation from May 2022, the repo rate has been increased by 2.5 percent. Due to this, the inflation in April 2022 was 7.8 percent. In May 2023, it has come down to 4.25 percent. Our target is to bring down inflation to 4 percent or below.

Muskan Kumawat Journalist & Writer