Rs 2,000 Banknotes Withdrawn from Circulation: Myths Vs Facts

After the Reserve Bank of India (RBI) decided to withdraw Rs. 2,000 denomination notes from circulation, several misconceptions and confusions have surfaced among the common public in the country further raising questions as to why the decision to discontinue the notes was taken.

The Rs. 2,000 denomination notes were introduced to meet the currency requirement after the withdrawal of the legal tender status of old Rs. 500 and Rs. 1,000 notes in circulation and later with gradual fulfillment of the objective, the printing of Rs. 2,000 banknotes stopped in 2018-19.

Due to a sustained fall in the use of this denomination among the general public, the RBI decided to withdraw the circulation of the banknotes. However, after making the announcement, several misconceptions have been created among the common public which has resulted in a few people rushing to banks to exchange the notes.

There is a misconception among the general public that Rs. 2,000 currency notes will become illegal if not exchanged before September 30, 2023, however, this is not true. The currency notes will continue to be legal tender even after the above mentioned date.

Earlier in 2016, when the demonetization was announced, reports emerged that only the account holders with the particular banks were allowed to exchange the old currency. Due to this reason, confusion has been created about whether the commoners will face the same situation while exchanging notes.

In this regard, the RBI stated that the people can visit any bank, regardless of whether they have an account with them or not, and exchange the currency notes up to a limit of Rs. 20,000 at a time.

Furthermore, this exchange of notes facility is provided free of cost to everyone.

Meanwhile, several opposition parties, leaders and others criticized the withdrawal decision claiming it to be demonetization. However, busting this myth, the Government of India has said the exchange of Rs. 2,000 notes into smaller denominations is not demonetization.

Also Read: Reactions To Withdrawal Of Rs 2,000 Notes By RBI; Click To Read