May, 19 : 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 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.
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.
