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Volume IconTMS Ep438: Withdrawal of Rs 2,000 notes, bank stocks, clean note policy

How can you exchange Rs 2,000 notes? How will withdrawal of Rs 2,000 notes affect the economy? Is withdrawal of Rs 2,000 notes positive for bank stocks? What is RBI's clean note policy? Answers here

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The 2000-rupee note has had quite a journey. It came into being seven years ago, with Narendra Modi's out-of-the-blue demonetisation move in 2016. And now, this ‘pink note’ is set to sail off into the sunset.
On that note, we have a special show for you today. We talk about the myriad possible impacts of the RBI’s move to strip the 2000-rupee currency of its status as a legal tender.

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We start by explaining how you should exchange these notes. We take you through the best possible ways as well as the challenges you might face in the process. 
But what about the move’s impact on our economy? Will it affect borrowing rates for the government and the companies? What do experts have to say? 
The RBI move was also expected to boost liquidity in the banking system.  The sentiment, however, didn't reflect on the bourses as most banking shares remained weak on Monday. So why didn't investors cheer the move? And what's the road ahead for bank stocks? 
And now to the central question: why did RBI decide to do away with the 2000 rupee note? In RBI governor Shaktikanta Das’s
words, the step was taken under the central bank’s ‘clean note policy’. But what is this policy? We decoded it for you in this episode of the podcast. 

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First Published: May 23 2023 | 8:00 AM IST

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