RBI withdraws Rs 2000 notes; to continue as legal tender

According to the new guidelines the notes which are already in circulation will be considered valid untill September 30 and there won't any printing of fresh notes

Hyderabad: The Reserve Bank of India has withdrawn the Rs 2000 currency notes from circulation. The announcement that caught many off guard was made by the apex bank in a press release on Friday.

The RBI said the Rs 2000 notes which are in circulation now will be considered valid till Septement 30. There would not be any printing of fresh notes of the denomination.

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The RBI press release said adequate stock of banknotes in other denominations were in circulation already. The availability of other denomination notes and the bank’s ‘clean note policy’ are the reasons behind the withdrawal.

₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk

— ReserveBankOfIndia (@RBI) May 19, 2023

Public can exchange Rs 2000 notes into other denominations at the nearest banks and 19 regional offices of the RBI from May 23 and the maximum limit of exchange is capped at Rs 20,000. Keeping in view the public’s comfort the RBI has asked the banks to exchange the notes till September 30.

The 2000 denomination notes were introduced in November, 2016 under Section 24(1) of the RBI Act.

The current decision was reminiscent of November 2016 decision to go for demonetisation of Rs 500 and Rs 1000 denominations.