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What does a desperate and issueless Opposition do when the RBI takes a decision to withdraw 2,000 rupee note, of which there (withdrawing and introducing currency notes) are several precedence in the past? Answer: Fear monger. They did so even during the times of Covid. So much so that they went to the extent of promoting vaccine hesitancy, without once realising that it may be detrimental to the health of people at large and weaken India’s fight against the once in a century pandemic. Here are the facts on RBI’s decision to withdraw the 2,000 currency note: • The RBI has decided to withdraw the 2,000 denomination banknotes from circulation. This move is initiated as a part of the RBI's 'Clean Note Policy,' aimed at ensuring the availability of high-quality banknotes for public use. The decision is also influenced by the fact that a majority of these banknotes, issued predominantly before March 2017, have reached their estimated life-span of 4-5 years. • This decision is taken by the RBI as part of its ongoing efforts to rationalise the currency structure and improve the availability of lower denomination banknotes. • It is a usual practice adopted by RBI to manage the currency denominations. It may be noted that RBI had undertaken a similar withdrawal of notes from circulation in 2013-2014 also. In January 2014, RBI completely withdrew from circulation all banknotes issued prior to 2005. • The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3% of notes in circulation) to ₹3.62 lakh crore, constituting only 10.8% of notes in circulation on March 31, 2023. It has also been observed that this denomination is not commonly used for transactions. • The use of UPI and digital payments has also increased tremendously in the last few years. In the report titled ‘India Digital Payments Annual Report,’ digital payment modes like UPI, Debit and Credit cards, and Prepaid Payment Instruments – Mobile and Prepaid cards processed 87.92 Bn transactions worth 149.5 lakh crores in the calendar year 2022. • While the Rs 2,000 notes will be gradually pulled out of circulation, they will remain legal tender beyond the withdrawal date. The public can continue to use these notes for transactions and also accept them as payment. • The RBI has provided a window until September 30, 2023, for the public to either deposit or exchange their 2,000 banknotes. The central bank has expressed its expectation that the four-month period provided is sufficient for people to return the majority of these notes back to the banks. • The public can deposit these notes into their bank accounts without restrictions, in compliance with existing Know Your Customer (KYC) norms and other relevant legal and regulatory requirements. However, the RBI has set a limit for exchanging these banknotes: only up to Rs 20,000 or 10 notes can be exchanged at a time. • Bank branches across the country will facilitate the deposit and exchange of these notes. Additionally, the RBI's 19 Regional Offices (ROs) with Issue Departments will also serve as exchange points until the end of September 2023.