Earlier this week, the Reserve Bank of India announced that the 2000 notes will be withdrawn from circulation. However, people need not worry about this as they did for demonetisation. People can change the notes by depositing them with any bank. They can visit and branch and can change 20,000 at a time.
As four months time was given to change the notes, everyone expected that the notes that are in circulation would reach the RBI by the end of the deadline and people will form big queues before the banks.
But that did not happen and people are rushing to gold shops to make the purchase as per the reports. Gold shops are seeing big queues following the big announcement from the RBI. This is not expected by anyone.
While announcing the decision, RBI said that 2000 notes were printed for circulation as new notes were introduced and they are not in adequate numbers initially. Having said that the central bank maintained, as the other notes are in adequate numbers, the big notes are withdrawn.
Instead of visiting the banks, people are reportedly heading to the gold shops and they are buying ornaments there. Despite some shops charging certain amount as charge, they are not worried.
10 gm 24 Carat gold costs over 60k and Silver is also at the peaks. Despite this, they are showing interest in buying the ornaments. Media reports say that after the RBI announced the withdrawal of big notes, the queues at the gold shops increased.