RBI to withdraw ₹2000 notes, continue as legal tender

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Indian Rupee (INR)

SRINAGAR — The Reserve Bank of India (RBI) made an announcement today regarding the withdrawal of ₹2000 notes from circulation. However, it clarified that these notes will still be considered legal tender.

According to the RBI, the ₹2000 denomination is not commonly used for day-to-day transactions. Individuals will have the option to deposit their ₹2000 banknotes into their bank accounts or exchange them for banknotes of other denominations at any bank branch, as stated by the RBI.

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To ensure operational convenience and prevent disruption of regular banking activities, the RBI press note mentioned that the exchange of ₹2000 banknotes for other denominations will be limited to ₹20,000 at a time, starting from May 23, 2023. This deposit/exchange facility will be available until September 30, 2023.

The ₹2000 banknote was introduced in November 2016, following the demonetization of ₹500 and ₹1000 notes in circulation at that time, as per Section 24(1) of the RBI Act, 1934. The objective was to fulfil the currency requirement of the economy during that period. However, once banknotes in other denominations became widely available, the printing of ₹2000 banknotes ceased in 2018-19, as stated in a press release issued by the Chief General Manager of the RBI.

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The decision to withdraw the ₹2000 banknotes from circulation aligns with the Reserve Bank of India’s “Clean Note Policy” and its aim to maintain the integrity and efficiency of the currency system.

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