The Reserve Bank of India takes the decision to withdraw ₹ 2000 for denomination of banknotes from the circular and asks to exchange them before September 30, 2023.
According to the statement of the bank on Friday, the central bank stated that “on the basis of the ‘clean note policy ‘of the RBI, it has been decided to withdraw ₹2000 from circulation. The denomination of ₹2000 will continue to be legal tender. To exchange the notes of ₹ 2000 in a time-bound manner and to provide enough time to the members of the public, all the banks shall provide the facility of exchange or deposit for ₹2000 until September.
The RBI gives an explanation of the moves. “89% of the denomination notes of ₹ 2000, which were issued before March 2017, have an estimated life span of 4-5 years. The total value of these notes has declined from ₹ 6.73 lakh crore on March 31, 2018 to ₹ 3.62 lakh crore, comprising only 10.8% of notes in circulation on March 31, 2023. It has been used for denominations, not transactions. The denomination of the notes continues to be adequate to meet the currency requirement of the common civilian.”
Members of the RBI said that the public may deposit Rs 2000 notes into accounts where they have accounts or exchange them for banknotes of a different denomination at another bank.
Comment by the central bank on this move “In order to avoid disruption of regular activities of bank branches for exchange of ₹ 2000 notes into notes of other denominations made up to a limit of ₹ 20000/- at a single time at any bank,” the facility of note exchange is provided at 19 regional offices of the RBI starting from May 23, 2023.
The RS2000 currency note was introduced in November 2016 following the demonization of the Rs1000 and ₹ 500 notes. With the objective of introducing the ₹ 2000 to reduce the denomination of banknotes, the printing of the ₹ 2000 has already stopped in 2018–19.