RBI MPC Meeting: MPC Resolutely Focused on 4% CPI Target, Half of Rs 2,000 Notes Returned Back, Says Das

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while supporting growth, Das said.

In the previous monetary policy review in April 2023, the RBI MPC had surprisingly halted the rate hike cycle and kept the key repo unchanged at 6.50 per cent. The decision of the status quo came after continuous hikes since 2022 in order to control inflation, during which the central bank had raised 250 basis points (bps). Inflation was high last year due to the supply chain constraint caused by the Russia-Ukraine war.

RBI on Rs 2000 Notes

Reserve Bank of India (RBI) Governor Shaktikanta Das on June 8 said around 50 percent of the Rs 2,000 currency notes in circulation as at the end March has returned to the banking system.

This constitutes around Rs 1.8 lakh crore in terms of value, the governor said. As at March-end, the total value of Rs 2,000 notes in circulation was around Rs 3.62 lakh crore.

The RBI chief added that around 85 per cent of the notes that have come back to the system is in the form of deposits.

The RBI had on May 19 announced the withdrawal of the Rs 2,000 bills as part of its clean note policy. For smooth completion of exchange or deposit, the RBI has provided all banks adequate time until September 30, 2023. It also advised banks to stop issuing the Rs 2,000 denomination banknotes with immediate effect.