India's latest currency note exchange seen less disruptive than 2016
India is bracing for a second currency note exchange program in less than seven years, pulling its 2,000 rupee note out of circulation in an exercise that comes ahead of a series of crucial state elections.
The withdrawal of the economy's highest denomination note is expected to be far less disruptive than a 2016 move to demonetise 86% of the country's currency in circulation overnight, which led to a sharp economic slowdown.
"The impact on the economy will be very marginal," said Reserve Bank of India Governor Shaktikanta Das at a briefing on Monday. The 2000-rupee notes were not commonly used in any transactions, he said.
The currency note exchange, which begins on Tuesday, has spurred some gold-buying, as people look to replace the 2,000 rupee-note as a store of value, while banks are preparing for a rush of customers depositing notes, several sources said.
The note is being withdrawn ahead of elections in several Indian states, inclu
