July 11, 2025: Reserve Bank of India (RBI) Governor Sanjay Malhotra addressed the Parliamentary Standing Committee on Finance on Thursday, delivering an extensive update on the state of India’s economy and financial system. Malhotra assured lawmakers that the economy is resilient and continues to perform strongly despite global headwinds.
Committee Chairman Bhartruhari Mahtab called the session “very meaningful,” highlighting the broad range of economic and financial matters discussed, including currency management, cryptocurrency, and financial reforms.
₹2,000 Notes: Still Legal Tender
A key point of clarification came on the status of ₹2,000 notes. Malhotra confirmed that although these notes are no longer being circulated, they remain legal tender. This clarification addresses ongoing public confusion and speculation since the RBI announced its withdrawal from circulation.
Cryptocurrency Regulation and Future Talks
The topic of cryptocurrency also featured during the session, with MPs seeking clarity on the regulatory approach India plans to adopt. While no major policy announcement was made, Malhotra is scheduled to reconvene with the committee on July 23 or 24, where the Insolvency and Bankruptcy Code (IBC) will be discussed in detail.
Counterfeit Currency Concerns
Concerns around fake currency, particularly counterfeit ₹500 notes, were also raised. A committee member pointed out a recent surge in seizures, though the RBI emphasized that the volume is relatively small compared to the total circulation. Malhotra reassured the panel that the RBI and the government are actively monitoring and implementing measures to combat the circulation of fake currency.