From ₹2000 notes withdrawal to interest rate hike, here's what RBI Guv Das has to say

Updated : May 24, 2023 18:46
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Editorji News Desk

Reserve Bank Governor Shaktikanta Das on Wednesday stressed that the entire process of withdrawal of Rs 2000 notes will be non-disruptive, and the Central Bank is  monitoring the situation regularly. There was no rush yesterday and there has been no problem or issue that has come up, he added. 

The governor also said that in its surveys, RBI found the the ₹2000 notes were not being used much. He reiterated that the ₹2000 notes were introduced into the system with a specific purpose to replenish the notes that were demonetised. This purpose, he said, was fulfilled. 

On the deadline of 30th September, the governor explained, that unless there is a timeline, such a process will not be effective. 

Speaking at an event organised by the industry chamber CII, Das also spoke about the credit policy. He said that the decision to tweak policy rates was not in his hand as he himself is driven by the situation on the ground.

"It's not in my hands. It all depends on the situation on the ground. I am driven by what's happening on the ground. What is the outlook on ground? What are the trends? How is the inflation buildup or the inflation softening?" 

In April, the Reserve Bank in a surprise move hit the pause button and decided to keep the key benchmark policy rate at 6.5 per cent.

Prior to it, the Reserve Bank of India (RBI) was on a rate hiking spree, raising the repo rate by 250 basis points since May 2022.

 

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