New Delhi: Reserve Bank of India (RBI) has announced to withdraw Rs 2,000 currency notes. However, the notes will continue to be legal tender till September 30, says RBI.
In a statement on Friday, the central bank stated: “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. 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.”
People may deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. 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, the statement added.
The RBI has advised banks to stop issuing ₹2000 denomination banknotes with immediate effect.
The RBI said the Rs 2000 denomination banknote was introduced in November 2016 primarily to meet the currency requirement of the economy in an expeditious manner after demonetisiation Rs 500 and Rs 1000 banknotes. 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.
