The Reserve Bank Of Indis’s (RBI) 19 regional offices will start taking Rs 2000 notes for exchange with lower denomination notes from May 23.
What Has Happening In India?
The Reserve Bank of India has decided to withdraw the Rs2000 denomination banknotes from circulation but they will continue to remain as Legal tender.
It has advised banks to stop issuing Rs2000 denomination banknotes with immediate effect.
When was Rs 2000 Introduced?
The Rs2000 denomination banknote was introduced in 8th November 2016 under Section 24(1) of RBI Act, 1934,
Primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawl of legal tender status of all Rs500 and Rs1000 banknotes in circulation at that time.
Objective
“The objective of introducing Rs2000 banknotes were met once banknotes in other denomination became available in adequate quantities,” RBI Said in a statement. The central bank advised the public to deposit Rs 2,000 notes — introduced during demonetisation in November 2016, when Rs 500 and Rs 1,000 notes were withdrawn — into their bank accounts and or exchange them into notes of other denominations at any bank branch. It also advised banks to stop issuing Rs 2,000 notes with immediate effect.
When The Printing was Stopped?
“The Printing of Rs2000 banknotes was stopped in 2018-2019.
About 89% of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years.”
A top official in the Reserve Bank of India said: “This is a routine exercise and a similar withdrawal of currency notes which had been printed before 2005 was done by the Government in 2013-2014. So nothing more should be read into this move this time around too. This is what other countries, including the United States do from time to time.”
Rs2000 Note in Circulation
The value of these banknotes in circulation has declined from Rs6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to Rs3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023.
“It has also been observed that this dinomination is not common,l used for trsansction, ” The statement further said
Further, The stock of bankotes in other denominations coninues to be adequate to meet the currency requirement of the public, RBI said.
Clean Note Policy of RBI
In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank Of India, It has been decided to withdraw the Rs2000 denomination banknotes from circulation.
The banknotes in RS2000 denomination will continue to be legal tender.
It may be noted that RBI had undertaken a similar withdrawl of notes from circulation in 2013-14
So what will you do with 2000 note?
“Accordingly, members of the public may deposit RS2000 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 probisions,” RBI Said in a statement.
In order to ensure operational conveniecne and to avoid disruption of regular activities of bank branches,
Exchange of Rs2000 banknotes into banknotes of other denominations can be made upto a limit of Rs20,000/- at a time at any bank starting from May 23,2023.
Any deadline for deposit?
The central bank said people can deposit or exchange for lower denominations notes till September 30 for upto Rs 20000 at a time.
|The RBI may extend the deadline form september 30 if needed, but even if anyone has a Rs2000 note after the current deadline,it will remain a valid tender.