RBI decides to withdraw Rs 2000 banknotes, asks public to deposit or exchange them
Mumbai, May 19 (UNI): The Reserve Bank of India (RBI) on Friday said that it has decided to withdraw the Rs 2000 denomination banknotes from circulation in line with its “Clean Note Policy.”
“The banknotes in Rs 2000 denomination will continue to be legal tender,” the central bank said in a press release.
RBI said that the Rs 2000 denomination banknote was introduced in November 2016 primarily to meet the currency requirement of the economy in an expeditious manner after Rs 500 and Rs 1000 banknotes ceased to be legal tender.
It further said that the objective of introducing Rs 2000 banknotes was met once banknotes in other denominations became available in adequate quantities.
As per the central bank, printing of Rs 2000 banknotes was stopped in 2018-19.
About 89% of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3% of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8% of notes in circulation on March 31, 2023.
The RBI said that it has also been observed that the banknotes in Rs 2000 denomination are not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public. “In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation,” the RBI said.
The RBI has asked the public to deposit Rs 2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch.
