RBI to Withdraw Rs 2,000 Notes from Circulation; Will Continue to Remain Legal Tender

The Reserve Bank of India (RBI) on Friday announced to withdraw Rs 2000 currency note from circulation. The notes 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, the RBI said. “Rs 2000 currency note will remain legal tender after 30th September too. RBI expects that 4 month time is enough for people to exchange notes with the banks. Most of the Rs 2000 notes that are in circulation will return to banks within the given time frame of 30th September. This is a routine exercise of RBI and people need not panic," sources told ANI. The RBI has advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect. EXCHANGE RS 2,000 NOTES AT BANKS FROM MAY 23 In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, the 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 starting from May 23, 2023 A person can also exchange Rs 2,000 notes upto the limit of Rs 20,000 at a time at the 19 Regional Offices (ROs) of RBI from May 23, 2023. OBJECTIVE OF INTRODUCING RS 2,000 NOTES WAS MET: RBI The central bank said 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, it said. “Members of the public may deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions," read the press release.