The Reserve Bank of India (RBI) on Friday announced that Rs 2,000 currency notes will be withdrawn from circulation, however, the notes will continue to be legal tender till September 30, a statement said. RBI has asked banks to provide deposit and/or exchange facilities for Rs 2,000 notes until September 30, 2023.
What you need to know about RBI withdrawing Rs 2,000 currency notes
- The banks will no longer issue Rs 2,000 currency notes.
- There is no need to panic as Rs 2,000 will continue to remain legal tender till September 30, 2023.
- People can deposit, and exchange Rs 2,000 currency notes with banks till September 30, 2023.
- Exchange facility for Rs 2,000 notes up to Rs 20,000 at a time would be available from May 23.
- The reserve bank has asked banks to stop issuing Rs 2,000 notes with immediate effect.
The Rs 2,000 denomination bank note was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1,000 bank notes that were in circulation at that time.
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.