The Bank of India has already announced that the Rs 2000 bank note will no longer enjoy the legal tender and will also not get circulated in the economy anymore. The bank has cited the reason that the note was not circulated to the extent it was printed and the dependency of the public upon the note in order to settle the transactions has been reduced to a great extent. Even the circulation of notes was coming down with the passage of time and that is why the central government decided to stop printing in 2018. It is important to understand that the citizens have been able to respond to this note ban in a mixed way. This has been for the second time that the legal tender has been withdrawn from a bank note which was just recently issued. Indians are using this bank note in order to purchase not only the daily Essentials but also branded goods and luxurious commodities such as jewellery and expensive electronics. The government has issued a notification that it is possible for the citizens to exchange the notes till 30th of September 2023. Therefore, the entire currency is being converted in the form of different purchases.
It is important to understand that this has been the largest demonetisation that has been carried in the country so far. The exchange of 24 million notes is not that easy but the government is taking every kind of step in order to make this entire exercise easy and comfortable. The people do not want to spend a lot of time exchanging the currency and that is why the government needs to ensure that the legal tender is not withdrawn till the deadline ends. It has been only a week that this notification has been announced by the government and the people have already started spending the Rs 2000 note so that they do not have to exchange them and this has increased the short term purchasing power of the people. The demand for gold and other metals have also been rising and there is a huge possibility that the price will rise again. All the shops in India accept this note as a medium of exchange and this will continue uptil 30th September.
This is the second attempt to monetize the currency after 2016 in which 86% of the currency was taken down. The government will take all the possible steps to ensure that the government is working towards the benefit of the people only and this is also a move taken to ensure that the black money is calculated and all the actions which aim at money laundering are controlled because the extent of black money in the market has been increasing over the period of time and this has become a major drawback to the country. This is the best way in order to control all of these activities in the country and ensure a better governance