In a significant development, the Reserve Bank of India (RBI) has declared the withdrawal of Rs 2,000 currency notes from circulation. However, the existing Rs 2,000 notes will continue to hold their status as legal tender, according to an official statement released on Friday.
To ensure a smooth transition and minimize disruption to regular banking operations, the RBI has implemented a phased approach for the exchange of Rs 2,000 banknotes with other denominations. Beginning May 23, 2023, individuals will be able to exchange Rs 2,000 notes for notes of different denominations, up to a limit of Rs 20,000 at a time, at any bank across the country.
In addition to bank branches, the RBI’s 19 Regional Offices (ROs) with issue departments will also facilitate the exchange of Rs 2,000 banknotes up to the limit of Rs 20,000 at a time. This service will be available starting May 23.
With immediate effect, the RBI has instructed banks to discontinue the issuance of Rs 2,000 denomination banknotes. The decision to withdraw the high-value notes comes as part of the RBI’s efforts to manage the country’s currency supply effectively.
The introduction of the Rs 2,000 denomination banknote took place in November 2016, following the demonetization move that rendered all Rs 500 and Rs 1,000 notes invalid. The purpose of introducing the Rs 2,000 notes was to swiftly meet the currency requirements of the economy at that time.
Individuals who possess Rs 2,000 banknotes are encouraged to deposit them in their bank accounts or exchange them for other denominations before the deadline of September 30, 2023. It is important to note that the Rs 2,000 notes will retain their legal tender status until the mentioned date.
