New Delhi: reserve Bank of India ,RBI) in its circular on Friday announced that it will start withdrawing Rs 2000 denomination notes from circulation from May 23, 2023. This is a part of RBI’s Clean Note Policy to ensure availability of good quality banknotes to the members of the public.
2000 banknote will retain its legal tender status till September 30, 2023. Thereafter, it will cease to be legal tender. RBI has requested banks to start the facility of depositing or exchanging Rs 2000 notes for customers from May 23, 2023.
Why are ₹2000 denomination bank notes being withdrawn?
Explaining the reason behind the surprise move, the RBI said, “The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934 primarily with the objective of quickly meeting the currency requirement of the economy. was introduced from Withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. To serve that purpose and with the availability of banknotes of other denominations in sufficient quantity, the printing of ₹2000 banknotes was discontinued in 2018-19. Most of the ₹2000 denomination notes were issued before March 2017 and are at the end of their expected life of 4-5 years. It is also observed that this denomination is not commonly used for transactions. In addition, the stock of banknotes of other denominations remains sufficient to meet the currency requirement of the public.
What should the public do with ₹2000 denomination bank notes held by them?
Members of the public can approach bank branches to deposit and/or exchange ₹2000 notes in their possession.
The facility of deposit in accounts and exchange of ₹2000 banknotes will be available in all banks till September 30, 2023. The facility of exchange will also be available in 19 Regional Offices (ROs) of RBI, which have Issue Departments, till September 30, 2023. ,
Are there any charges for exchange facility?
No, exchange facility will be provided free of cost.
Will there be special arrangements for exchange and deposits for senior citizens, persons with disabilities, etc.?
Banks have been instructed to make arrangements to minimize inconvenience to senior citizens, persons with disabilities, etc. seeking exchange/deposit of ₹2000 notes.