BIG: RBI Will Withdraw ₹2000 Currency Notes from Circulation- It Will Remain Legal Tender Till Sep 30
The Reserve Bank of India today made a big announannounced that it will withdraw ₹2000 notes from circulation. However, the currency will continue as Legal Tender.
According to a press release published today by the Chief General Manager of the RBI, the purpose of releasing the 2000 banknotes was to satisfy the economy’s need for cash at the time.
It stated that after banknotes in other denominations were made accessible in sufficient numbers, this objective was achieved, and as a result, the printing of 2000 banknotes was discontinued in 2018–19.
“In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the ₹2000 denomination banknotes from circulation.“
In November 2016, the ₹2000 denomination banknote was launched in accordance with Section 24(1) of the RBI Act, 1934, principally to swiftly address the economy’s need for cash following the withdrawal of the legal tender status of the 500 and 1000 banknotes in use at the time. “Once banknotes in other denominations became available in sufficient quantities, the objective of introducing 2000 banknotes was met,” RBI stated in a statement.
As a result, the printing of ₹2000 banknotes was discontinued in 2018–19.A little over 89% of the banknotes in the denomination of 2000 were printed before March 2017 and are nearing the end of their 4-5 year expected lifespan.
The total value of these banknotes in circulation has decreased from its peak of 6.73 lakh crore as of March 31, 2018 (37.3% of Notes in Circulation) to its lowest point of 3.62 lakh crore as of March 31, 2023, which represents only 10.8% of Notes in Circulation.
Additionally, it has been noted that transactions involving this denomination are uncommon.
Additionally, the supply of banknotes in other denominations is still sufficient to meet the public’s demand for currency.
In light of the foregoing and in accordance with the Reserve Bank of India’s “Clean Note Policy,” it has been decided to stop issuing banknotes with the denomination of ₹2000.
The ₹2000-denomination bills will still be accepted as legal money. It should be noted that the RBI removed comparable notes from circulation in 2013–2014.
Therefore, customers can deposit ₹2000 notes into their accounts or exchange them for bills of other denominations at any bank branch. Deposits into bank accounts may be done normally, that is, without limits and according to current directives and other relevant legal constraints, according to a statement from the RBI.
Starting on May 23, 2023, any bank will allow the exchange of 2000 rupee notes into notes of other denominations up to a limit of 20,000 rupees at a time in order to maintain operational convenience and prevent disrupting the routine operations of bank branches.