Are Rs. 1000 Notes Returning Back to Circulation?

The Reserve Bank of India (RBI) is unlikely to bring back Rs 1,000 currency notes. Despite recent speculations about the reintroduction of Rs 1,000 notes following the RBI's announcement in May to withdraw Rs 2,000 currency notes from circulation, the central bank has clearly mentioned that there is as of now no consideration for such a move. 

ANI, a news agency, reported this information, citing sources. Earlier this year, RBI Governor Shaktikanta Das also addressed the rumors of reintroducing Rs 1,000 notes, stating that there was no current proposal for such a reintroduction. He described it as speculative and clarified that there was no plan to reintroduce Rs 1,000 notes at that time.

The RBI introduced Rs 2,000 notes to quickly meet the country's need for currency after discontinuing Rs 500 and Rs 1,000 notes. Once a sufficient quantity of banknotes in other denominations became available, the purpose of introducing Rs 2,000 notes was achieved. Therefore, RBI paused the printing of Rs 2,000 notes in 2018-19.

Initially, the public and entities holding these notes were advised to exchange/deposit in bank accounts by September 30 and later it was extended to October 7.

Starting from October 8, individuals were provided the choice to either exchange the currency or have the amount credited to their bank accounts at 19 RBI offices.

After the demonetization of Rs 500 and Rs 1,000 banknotes in November 2016, the RBI introduced Rs 2,000 notes, alongside new Rs 500 notes, to fasten the process of remonetization.

Also Read: Fundamentals of Advance Tax as per The Income Tax Act 1961: Basic Particulars

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