RBI to withdraw Rs 2000 banknotes from circulation; know the deadline for exchange

Bhubaneswar: The Reserve Bank of India (RBI) has decided to withdraw the Rs 2000 denomination banknotes from circulation in accordance with its ‘Clean Note Policy’.

However, the banknotes in Rs 2000 denomination will continue to be legal tender, said the RBI.

The RBI had withdrawn notes of certain denominations from circulation in 2013-14 financial year, sources said.

“The people may deposit Rs 2000 banknotes into their accounts or exchange them into banknotes of other denominations at any bank branch,” said the RBI.

In order to ensure operational convenience and avoid disruption of regular activities of bank branches, exchange of Rs 2000 banknotes into banknotes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting from May 23, added the central bank.

“All banks shall provide deposit or exchange facility for Rs 2000 banknotes till September 30 this year,” said the RBI.

According to the RBI, the Rs 2000 denomination banknotes were introduced in November 2016 under Section 24 (1) of RBI Act, 1934 to meet the currency requirement of the economy in the wake of withdrawal of legal tender status of all Rs 500 and Rs 1000 banknotes in circulation. The printing of Rs 2000 banknotes was stopped in 2018-19 fiscal, said the RBI.

“The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37 per cent of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8 per cent of notes in circulation on March 31, 2023,” it added.

The RBI has advised the banks to stop issuing Rs 2000 denomination banknotes with immediate effect.