The Reserve Bank of India (RBI) has decided to discontinue the issue of Rs 2,000 banknotes. However, the notes will remain legal money, according to a circular issued by the central bank on Friday. All banks must provide a deposit and/or exchange facility for Rs 2000 notes by September 30, 2023.
The central bank further stated that to ensure operational ease and avoid disruption of regular bank branch activities, Rs 2,000 notes can be exchanged for notes of other denominations up to Rs 20,000 at a time in any branch. Starting on May 23rd.
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After demonetizing the old Rs 1,000 and Rs 500 notes in November 2016, the Rs 2,000 denomination currency notes were issued. The goal of introducing Rs 2,000 banknotes, according to the Reserve Bank of India, was served when currency in other denominations became available in sufficient amount. In such a case, the printing of Rs 2,000 notes was halted in 2018-19.
The central bank stated in a press statement that the Rs 2,000 notes currently in circulation will remain legal tender and that consumers can use them for transactions as well as receive them in payment. As a result, withdrawing Rs 2,000 banknotes would not immediately impact citizens because they will have adequate time to swap them.
₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk
— ReserveBankOfIndia (@RBI) May 19, 2023
