There have been many claims that the RBI will withdraw Rs 500 notes after it issued a withdrawal of the Rs 2000 bank notes, stating a deadline of September 31.
Governor Shaktikanta Das of the Reserve Bank of India (RBI) addressed speculations on Thursday, stating that the central bank has no intention of withdrawing Rs 500 notes from circulation or reintroducing Rs 1,000 notes. During a press conference unveiling the second bi-monthly monetary policy for FY24, Das urged the public not to engage in speculative discussions.
Many customers who made large deposits after the withdrawal of Rs 500 and Rs 1,000 notes in 2016 later received income tax notices. Cash deposits above Rs one lakh in the savings account can invite income tax notices, said a bank official.
Due to the sudden inflow of legal tender, digital payments have fallen to around 10% from 40% of the daily sales, according to Punjab Petroleum Dealers Association.