Nearly two-thirds of Indians don’t hold a single Rs 2,000 note, survey finds

Amid speculation that last week’s decision was taken to curb black money or may even have political motivations, Governor Shaktikanta Das has insisted that the action was a result of the RBI’s currency management operations and that the high-denomination note had served its purpose.

“These Rs 2,000 notes were primarily issued for the purpose of quickly replenishing the value of money which was being taken out from the system when the then prevailing Rs 500 and Rs 1,000 notes, when their legal tender status was withdrawn… That purpose has been fulfilled,” Das told reporters on May 22.

Reduced acceptance

Das had also commented that the Rs 2,000 note was not being actively used for transactions as some shopkeepers, particularly smaller ones, did not want to accept it due to its large denomination and lack of change.

In its survey, LocalCircles found that of those who have tried using the Rs 2,000 note to make a payment after the RBI’s May 19 announcement, 91 percent found it difficult to get sellers to accept it.

“Many citizens with the Rs 2,000 note reveal difficulty in being able to use it at retail stores, chemists, hospitals, service providers and even petrol pumps since the RBI announcement,” LocalCircles said.

“It appears that RBI’s assurance of Rs 2,000 notes being a legal currency despite plans to withdraw it has increased fears about whether it would remain so after September 30 and fears of loss if it is not accepted as a legal currency,” the firm added.

Some of the other findings of the survey were:

>> 64 percent of the respondents support the RBI’s decision to withdraw the Rs 2,000 note from circulation, while 22 percent oppose the move. However, the question assumes the note will continue to be legal tender after September 30.

>> 68 percent of respondents believe that that the Rs 2,000 note remaining legal tender after September 30 “will enable those with black money to exploit the situation”. A similar percentage of respondents do not want the exchange of the Rs 2,000 note to be permitted and only want their deposit to be allowed.