₹2,000 note withdrawal sparks mini gold rush, cash payments at petrol pumps and more

May 23, 2023

By: Rahul Verma

Pink notes withdrawn

The Reserve Bank of India (RBI) on Friday announced the withdrawal of ₹2,000-denomination banknotes from circulation. However, the existing notes will continue to be accepted as legal tender.

Credit: Business-Insider-India

A scramble to change

After the announcement of the withdrawal of the ₹2,000 note, individuals have exhibited diverse reactions. While some hoarders attempted to purchase gold at inflated prices, others focused on targeting foreign exchange and making charitable donations.

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72 percent of COD orders paid in pink notes

Zomato, the leading food delivery platform, revealed on Monday that 72 percent of customers who chose cash on delivery (COD) for their orders since Friday used ₹2,000 notes for payment.

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Gold rush

According to NDTV, RBI’s decision to withdraw ₹2,000 notes has resulted in a slight increase in jewellery sales. However, this recent surge cannot be compared to the rush witnessed in 2016 when ₹500 and ₹1,000 notes were discontinued.

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Gold price sores

On Monday, the price of gold rose by ₹485 per 10 grams to touch ₹60,760. On Friday, the price of gold was at ₹60,275.

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Petrol pumps witness surge in pink note transactions

Delhi fuel stations have reported a significant increase in the number of ₹2,000 notes received within a 24-hour period, India Today reported.

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High-end consumer durables to get a boost

Kotak Institutional Equities projects a substantial surge of ₹1.5-2 lakh crore in deposits. It also expects consumption to see a boost especially in luxury items like gold, jewellery, high-end consumer durables, and real estate.

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Exchange rules

Between May 23 and September 30, individuals can exchange ₹2,000 banknotes at any bank for other denominations up to a limit of ₹20,000. This measure aims to facilitate the exchange process and minimise inconvenience for the public.

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Exchange fee?

RBI has said that there will be no exchange fee for depositing or exchanging ₹2,000 notes. Individuals will be able to carry out these transactions without incurring any additional charges.

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