PAN required for Rs 2,000 deposits over Rs 50K: RBI Governor

New Delhi: Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday said existing income tax requirement of furnishing PAN for deposits of Rs 50,000 or more in bank accounts will continue to apply for deposits of the withdrawn 2000 rupee notes.

He added that most of the withdrawn Rs 2,000 rupee notes are expected to be returned by the deadline of September 30.

Speaking to reporters for the first time since the surprise decision to withdraw the highest denomination currency note was announced, Das said the decision was part of currency management.

Rs 2,000 currency notes continue to be legal tender, Das added.

Indian currency management system is very robust, exchange rate has remained stable despite crisis in financial markets due to war in Ukraine and failure of certain banks in the West, he said.

The impact of the withdrawal on the economy will be "very very marginal", he said, adding Rs 2,000 currency notes made up for just 10.8 per cent of the total currency in circulation.

He said Rs 2,000 notes were introduced primarily to replenish the currency that was withdrawn following 2016 demonetisation, he said.

While the withdrawn 2,000 rupee notes can either be deposited in bank accounts or exchange for other currency, banks have been advised to make necessary arrangements for exchange, he said.

"We expect most of Rs 2,000 bank notes to come back to the exchequer by September 30," he said. "We have more than adequate quantities of printed notes already available in the system, not just with RBI but with currency chests operated by banks. We have sufficient stocks, no need to worry."

RBI, he said, was sensitive to difficulties faced by people and would come out with regulations if need be.

Das said liquidity in the system is being monitored on a daily basis.

Exchange

No form or requisition slip is required for the exchange of Rs 2,000 notes up to a limit of Rs 20,000 at a time as part of the RBI exercise to withdraw the high-value currency notes from circulation.

The facility of exchange will be available from May 23 in banks.

(With PTI inputs.)