The RBI chief said that Rs 2,000 currency notes accounted for just 10.8% of the total currency in circulation, and emphasised that the impact of the move on the economy will be "very very marginal" since the country’s currency management system is highly robust.
As much as 1 trillion rupees ($12.1 billion) may be added to India’s financial system as authorities remove 2,000 rupee notes from circulation, according to QuantEco Research and Kotak Mahindra Bank Ltd.
Key indices of the domestic equities market opened higher on Monday morning as buying in IT stocks took place, defying weak global cues prevailing across the world. BSE 30-share Sensex went up 156 points to 61,909.79 and NSE Nifty 50 surged 69 points to 18,272.60 in morning trade on Monday.
India's Reserve Bank announced that it will withdraw the INR 2,000 ($27) banknote from circulation, and citizens have until September 30, 2022, to deposit or exchange the notes. The value of INR 2,000 notes in circulation is $44.27bn, or 10.8% of the currency in circulation, and experts suggest the move may improve banking system liquidity and boost deposits.
In relation to India's G20 presidency, Downing Street also indicated that the British Indian leader's first visit to India is expected to be for the G20 Summit in New Delhi later this year. "The leaders reflected on the deep ties between the UK and India, rooted in our human connections, and the vital importance of democracy and fair and open trade," said a Downing Street spokesperson.
