New Delhi: The Reserve Bank of India (RBI) on Friday announced to withdraw denomination of Rs 2,000 notes from circulation in the country. The RBI has advised people to exchange these notes by September 30. In the bank, up to Rs 20, 000, i.e. 10 notes of Rs 2,000, can be replaced by small notes. All banks will have the facility to exchange 2000 rupees notes.
RBI has asked all banks to stop issuing Rs 2,000 notes immediately.
The central bank has said that it is withdrawing Rs 2,000 notes from circulation and people can exchange these notes till September 30.
The Reserve Bank of India will start accepting Rs 2,000 notes for exchange with lower denomination notes from May 23.
The RBI started printing Rs 2,000 notes after Prime Minister Narendra Modi announced demonetisation of Rs 1,000 and Rs 500 notes overnight in November 2016.
“The objective of introduction of Rs 2,000 banknotes was achieved when banknotes of other denominations became available in sufficient quantity. Therefore, printing of Rs 2,000 notes was stopped in 2018-19, ” RBI said.
“In order to ensure operational convenience and to avoid disruption of routine activities of bank branches, with effect from May 23, 2023, any bank shall issue banknotes of Rs 2,000 denomination in other denominations,” the RBI said. It can be changed to a limit of Rs 20,000 at a time.”
Meanwhile, RBI has asked people to deposit Rs 2,000 notes in banks or replace them with lower denomination notes till September 30.
About 89 per cent of the Rs 2,000 denomination banknotes were issued before March 2017. Their estimated lifespan of four-five years is now coming to an end. Banknotes of this denomination were at their peak in circulation on March 31, 2018.
At that time, Rs 6.73 lakh crore of Rs 2,000 was in circulation. This circulation has come down to Rs 3.62 lakh crore as on March 31, 2023.