RBI To Withdraw Rs 2,000 Notes: 2 thousand rupees notes will be out of circulation, know when will the replacement start

Pankaj Prasad
RBI To Withdraw Rs 2000 Notes
RBI To Withdraw Rs 2000 Notes

People can deposit Rs 2,000 notes in bank accounts or exchange them with notes of other denominations by visiting any bank branch.

RBI has announced to withdraw Rs 2000 note from circulation. The Reserve Bank of India has advised banks to stop issuing banknotes in the denomination of Rs 2,000 with immediate effect. However, banknotes in the denomination of Rs 2000 will continue to be legal tender. According to the information, RBI has taken this decision under the Clean Note Policy. RBI has said that these notes will remain legally valid till 30 September.

RBI issued in 2016

RBI had issued these notes in November 2016 under section 24(1) of the RBI Act 1934. These notes were issued by the Reserve Bank after demonetisation. This decision was taken so that the 500 and 1000 rupee notes which were removed from circulation at that time, could reduce the impact on the market and economy. When bank notes of other denominations became available in sufficient quantity, then the purpose of introducing two thousand rupees into circulation was fulfilled. The RBI said that the printing of Rs 2000 notes was discontinued in 2018-19 once the objective of introducing Rs 2000 bank notes was achieved. By that time bank notes of other denominations had become available in sufficient quantity. RBI has also pointed out that about 89 per cent of the Rs 2000 denomination banknotes were issued before March 2017.

The process of changing notes in banks will start from May 23

People will be able to deposit Rs 2,000 notes in their bank accounts or exchange them with notes of other denominations by visiting any bank branch. People have to keep in mind that at one go notes of a maximum value of Rs 20,000 can be exchanged. This process will start from 23 May and will end on 30 September 2023.

Will remain in legal tender even after 30 September

ANI sources have told that Rs 2000 note will remain legal tender even after 30 September. RBI hopes that 4 months is enough time for people to exchange notes with banks. Most of the Rs 2000 notes in circulation will be returned to the banks within the stipulated deadline of 30 September. This is a regular exercise of RBI and people need not panic.