RBI to Withdraw Rs 2,000 Notes From Circulation; Will Continue As Legal Tender Till Sept 30
Separate guidelines have been issued to the banks.
(Representative image)
The RBI has advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect
The Reserve Bank of India (RBI) on Friday announced to withdraw Rs 2000 currency note from circulation. The notes will continue to be legal tender till September 30.
To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/or exchange facility for Rs 2000 banknotes until September 30, 2023, the RBI said.
The RBI has advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect.
“About 89% of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to Rs 3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public. 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 Rs 2000 denomination banknotes from circulation. The banknotes in Rs 2000 denomination will continue to be legal tender,” RBI’s press release said.
The central bank said the objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, printing of Rs 2000 banknotes was stopped in 2018-19, it said.
“Members of the public may deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions. In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000/- at a time at any bank starting from May 23, 2023,” read the press release.
A person can also exchange Rs 2,000 notes upto the limit of Rs 20,000 at a time at the 19 Regional Offices (ROs) of RBI from May 23, 2023.
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