Mumbai: The Reserve Bank of India (RBI) on Friday announced to withdraw Rs 2000 note from circulation. The notes will continue to be legal tender till September 30.
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.
Separate guidelines have been issued to the banks. The RBI has advised banks to stop issuing Rs 2000 denomination banknotes with immediate effect.
Meanwhile, RBI said that citizens will continue to be able to deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch up to September 30, 2023.
Rs 2000 denomination banknote was introduced in November 2016
The Rs 2000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1000 banknotes in circulation at that time.
The objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities. Therefore, the printing of Rs 2000 banknotes was stopped subsequently in 2018-19, stated RBI.
About 89 per cent of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life span of four-five years.
"It has also been observed that this denomination is not commonly used for transactions.
Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public," RBI said Friday.
"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 starting from May 23, 2023," RBI said.
The RBI had stopped the printing of Rs 2,000 banknotes in 2018-2019. Also, about 89 per cent of the Rs 2,000 denomination notes issued before March 2017 are said to be at the end of their estimated lifespan of 4-5 years.
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.
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