RBI not looking to withdraw 500 notes or re-introducing Rs 1,000 currency: Governor

New Delhi: The RBI Governor Shri Shaktikanta Das today while giving his statement on Monetary Policy he said that the centre bank has no such plans to withdraw Rs 500 notes from circulation or re-introduce Rs 1,000 notes. 

He also requests the public not to speculate on this matter. Moreover RBI has keeps the policy repo rate unchanged at 6.50 %. The policy repo rate has been increased by 250 basis points since May 2022 and is still working its way through the system.

With this policy repo rate and full-year projected inflation for 2023-24 at just a little above 5 per cent, the real policy rate continues to be positive said Shri Das.

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The average system liquidity, however, is still in surplus mode and could increase as Rs 2,000 banknotes get deposited in the banks. 

Bank Last month withdrew Rs 2000 Currency from circulation which left people in shock and banks saw a heavy rush from people. 

Talking about inflation Das said, Headline CPI inflation has come down during March-April 2023 to 4.7 per cent in April, the lowest reading since November 2021. Monetary policy tightening and supply side measures contributed to this process. The easing of inflation was observed across food, fuel and core (CPI excluding food and fuel) categories. Food inflation declined to 4.2 per cent in April, while core inflation moderated to 5.1 per cent. A durable disinflation in the core component would be critical for a sustained alignment of the headline inflation with the target.

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