Discontinuation of Rs.2000 Currency Notes Demonetisation? Govt. Clarifies

The Reserve Bank of India(RBI) via latest Circular has notified the withdrawal of Rs.2000 Denomination Banknotes from Circulation. Now Government issued clarification on this withdrawal of Rs.2000 Banknotes from Circulation.

With the Rs.2000 denomination bank notes set to be withdrawn from circulation, there are several Myths surrounding it. Let’s get to know the Facts related to this decision of RBI.

The discontinuation of Rs.2000 currency notes is driven by a forward-looking vision. Here are some of the reasons for the decision.

Why are Rs.2000 Currency Notes Discontinued?

Rs.2000 note was primarily introduced to meet the currency requirement after the withdrawal of the legal tender status of all Rs.500 and Rs.1000 notes in circulation.

With the gradual fulfillment of the objective, the printing of 2000 banknotes stopped in 2018-19, and is now to be withdrawn.

Sustained fall in the use of this denomination among general public.

Tremendous increase in use of UPI and Digital payments.

Myths vs. Facts

The Rs.2000 notes will continue to be legal tender even after September 30, 2023. Your currency remains valid, so keep calm and let’s bust the panic!

No need to panic or rush to exchange them. Any bank, regardless of account ownership, is authorized to exchange Rs.2,000 currency notes for smaller denominations.

As we embrace this change, it is important to note that the exchange of notes shall be provided free of cost!

Setting the record straight! The exchange of Rs.2000 notes into smaller denominations is NOT demonetisation. It’s simply a step to facilitate smoother transactions and meet evolving needs.