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Credit rating and finance for MSMEs: The Reserve Bank of India’s (RBI) final decision to withdraw Rs 2000 denomination banknotes from circulation will not have any impression on traders, said traders’ physique Confederation of All India Traders (CAIT). In a statement following the central bank’s announcement on Friday, the confederation taken care of that “there will be no disturbance in trade of traders.”
“The RBI has taken ample actions to guarantee easy transactions in organization by declaring Rs 2000 to keep on being as a legal tender and by furnishing a window of four months for exchanging Rs 2000 notes with smaller sized denomination notes,” said CAIT National President B C Bhartia and Secretary Normal Praveen Khandelwal.
Rs 2000 banknote was introduced in November 2016 primarily to meet up with the forex prerequisite of the economy in an expeditious fashion after the withdrawal of the authorized tender standing of all Rs 500 and Rs 1000 banknotes in circulation at that time. The objective of introducing Rs 2000 banknotes was satisfied the moment banknotes in other denominations turned available in sufficient quantities and thus, the printing of Rs 2000 banknotes was stopped in 2018-19, RBI said in its announcement.
Importantly, the complete worth of Rs 2000 banknotes in circulation experienced dropped from Rs 6.73 lakh crore at its peak as of March 2018 constituting 37.3 for every cent of notes in circulation to Rs 3.62 lakh crore with only 10.8 per cent share in notes in circulation as of March 2023. The RBI claimed Rs 2000 notes were being not commonly employed for transactions.
Also read: Traders’ entire body CAIT calls for checking mechanism for social media, OTT platforms
“The RBI buy about currency notes of Rs 2000 is a suitable step in the way of motivating and encouraging citizens to accept and undertake digital payments in their day-to-day acquiring. CAIT has been actively advocating acceptance of digital payments among the trading local community for previous a lot of yrs,” it said.
The central bank has already questioned banking institutions to prevent issuing Rs 2000 notes with fast impact and current types can be deposited or exchanged for notes of other denominations at any lender branch until September 30 this year. Importantly, the Rs 2000 denomination notes will keep on to be lawful tender.
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