On 19-5-2023, the Reserve Bank of India (‘RBI’) withdrew Rs. 2000 Denomination Banknotes from Circulation in pursuance of the “Clean Note Policy”. It was specified that it will still continue as Legal Tender.
Key Points:
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RBI has directed to deposit the Rs. 2000 denomination banknotes in the bank accounts and/ or exchange them into banknotes of other denominations at any bank branch.
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To avoid regular activities of bank branches, the exchange can be made up to a limit of Rs. 20,000 at a time at any bank starting from 23-5-2023.
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This facility of exchange will be provided until 30-9-2023 for which guidelines have been issued to the banks.
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The facility of exchange will also be provided in 19 Regional Offices of RBI.
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RBI has directed all the banks to stop issuing Rs. 2000 banknotes with immediate effect.
Note: Rs. 2000 denomination notes were introduced in the year 2016 to meet currency requirements of the economy after the legal tender of Rs.500 and Rs.1000 banknotes were withdrawn. Printing of Rs. 2000 banknotes were stopped in the year 2018-2019 after adequate quantities were circulated in the economy. It was observed by the RBI that these notes were not commonly used for transactions.