RBI withdraws ₹2000 note from circulation
2023-05-20The Reserve Bank of India has decided to withdraw the ₹2000 denomination banknotes from circulation and has advised banks to stop issuing these notes with immediate effect. In continuation of the “Clean Note Policy" of the RBI, it has been decided to withdraw the ₹2000 denomination banknotes from circulation. The banknotes in ₹2000 denomination will continue to be legal tender.
The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, after the withdrawal of legal tender status of all ₹500 and ₹1000 banknotes.
“₹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 ₹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," RBI said in a statement.
“The objective of introducing ₹2000 banknotes were met once banknotes in other denominations became available in adequate quantities," the statement said.
“The printing of ₹2000 banknotes was stopped in 2018-19. About 89% of the ₹2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to ₹3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. It has also been observed that this denomination is not commonly used for transactions," the statement further said.
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