Rs. 2000 Note Ban: RBI withdraws 2000 Note from circulation

Rs. 2000 note was introduced after demonetization i.e. in November 2016. It came after the withdrawal of the legal tender status of all Rs. 500 and Rs. 1000 banknotes in circulation at that time. The, printing of Rs. 2000 banknotes was stopped in 2018-19.

Approximately 89% of the banknotes in the Rs. 2000 denomination were printed before March 2017 and are nearing the end of their predicted life of 4-5 years. From a peak of Rs. 6.73 lakh crore on March 31, 2018 (37.3% of notes in circulation), to Rs. 3.62 lakh crore on March 31, 2023, or 10.8% of notes in circulation, the total value of these banknotes has decreased. Additionally, it has been noted that transactions involving this denomination are uncommon. Additionally, the supply of banknotes in other denominations is still sufficient to meet the public’s demand for currency.

It has been decided to remove the Rs. 2000 denomination banknotes from circulation in light of the foregoing and in accordance with the Reserve Bank of India’s “Clean Note Policy”.

The Rs. 2000 banknotes will still be accepted as legal money.

It should be noted that the RBI removed comparable notes from circulation in 2013–2014.

Therefore, customers of any bank branch may deposit Rs. 2000 banknotes into their accounts or swap them for notes of other denominations. Deposits into bank accounts can be made normally, that is, without limits and in accordance with current directives and other relevant legal requirements.

Starting on May 23, 2023, any bank will allow the conversion of Rs. 2000 banknotes into notes of other denominations up to a limit of Rs. 20,000/- at a time in order to maintain operational ease and prevent disrupting the routine activities of bank branches.

All banks must offer a deposit and/or exchange service for Rs. 2000 banknotes till September 30, 2023, in order to finish the process on schedule and give the general public enough time. The banks have received separate recommendations.

Starting on May 23, 2023, the 19 Regional Offices (ROs) of the RBI with Issue Departments1 will additionally offer the ability to exchange Rs. 2000 banknotes up to a limit of Rs. 20,000 at a time.

The Reserve Bank of India has instructed banks to immediately stop issuing currency with a denomination of Rs. 2000.

The public is urged to make use of the opportunity to deposit and/or exchange the Rs. 2000 banknotes by September 30, 2023.