RBI to Withdraw Rs 2000 Denomination Notes from Circulation

The Reserve Bank of India (RBI) has decided to withdraw Rs 2000 denomination notes from circulation. The RBI has advised banks to stop issuing Rs 2000 denomination bank notes with immediate effect.

However, the notes will continue to be legal tender as of now till September 30.

Meanwhile, the RBI said that citizens will be able to deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch up to September 30, 2023.

The RBI also said that “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 up to a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.”

It may be mentioned that the Rs 2000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time.

The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2000 banknotes was stopped subsequently in 2018-19, stated RBI.

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