RBI 2000 Notes: According to a circular issued by the Reserve Bank of India (RBI) on Friday, the banknotes with a face value of Rs 2,000 will no longer be in use but would continue to be considered legal currency.

In an immediate action, the RBI has instructed banks to cease issuing Rs 2,000 banknotes. The central bank’s circular emphasizes that all Rs 2,000 currency notes must be exchanged before September 30, 2023.

“To ensure a timely process and allow sufficient time for the public, all banks are required to provide facilities for depositing and/or exchanging Rs 2,000 banknotes until September 30, 2023,” states the RBI circular.

Last Date to Exchange 2000 Rupees Notes

The central bank has called upon individuals to exchange their Rs 2,000 currency notes by September 30, 2023. All banks have been directed to offer facilities for depositing or exchanging Rs 2,000 banknotes until September 30. The Rs 2,000 notes will however continue to be accepted as legal money.
The central bank has also approved the exchange of Rs 2,000 notes for other denominations. It will be up to a ceiling of Rs 20,000 at a time. The exchange can be done at any branch beginning on May 23. It will ensure operational ease and prevent disruption to ordinary banking activity.

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What Did RBI Say?

Following the demonetization of the previous Rs. 1,000 and Rs. 500 notes in November 2016, a new Rs. 2,000 banknote was released. According to the RBI, the objective of introducing the Rs 2,000 banknotes was fulfilled once an adequate quantity of currency in other denominations became available. Consequently, the printing of Rs 2,000 banknotes ceased in 2018-19.

The RBI provided additional details about the choice. It stated that “almost 89% of the Rs 2,000 denomination banknotes were printed prior to March 2017 and have approached the end of their expected lifespan of 4-5 years.

At their peak on March 31, 2018 (37.3% of all notes in circulation), the total value of these banknotes in circulation was Rs 6.73 lakh crore. By March 31, 2023, it had dropped to Rs 3.62 lakh crore or 10.8% of all notes in circulation. Additionally, it has been observed that this denomination is not commonly used for transactions. Furthermore, the stock of banknotes in other denominations continues to be adequate to meet the currency requirements of the public.”

According to the circular, “it has been decided to withdraw the Rs 2,000 denomination banknotes from circulation. It is in accordance with the foregoing and the Reserve Bank of India’s ‘Clean Note Policy’.”

How Does it Affect Common People?

The pullout would be done in a “time-bound” and organized manner. Thus, citizens shouldn’t panic even if banks have been told to stop printing Rs 2,000 banknotes right once. The central bank guarantees in a press release that the Rs 2,000 notes that are now in circulation will continue to be accepted as payment and as legal money.

Note that the RBI has “encouraged” the general public to deposit and/or exchange these banknotes by September 30, 2023, at the latest. As a result, citizens won’t be affected right away by the withdrawal of Rs 2,000 banknotes because they’ll have plenty of time to replace them.