Based on a circular released by the Reserve Bank of India (RBI) , Currency notes of Rs 2000 will be withdrawn from circulation.
The Reserve Bank of India has informed banks to stop issuing Rs 2,000 denomination banknotes under immediate effect. Sufficient time is being given for the holders of these notes for deposit and/or exchange of Rs 2000 notes. The banknotes can be exchanged at any bank branch until 30 September, 2023.
The Rs 2000 notes will continue to be in circulating medium until then.
Exchange facilities of these notes will be avaliable from May 23. As per the circular provided by the RBI, Rs 2000 note holders can exchange the existing notes for upto a limit of Rs 20,000 at a time, in order to ensure comfortable handling and to avoid disturbance of regular activities of bank branches.
It is also said that deposit into bank accounts can be made in the accustomed process, that is, without restrictions and subject to present instructions and other applicable legislative requirements.
The facility for exchange of Rs 2000 notes will also be given at 19 regional offices of the Reserve Bank of India.
According to sources, RBI has decided to suspend the Rs 2000 notes in view of the fact that, the life span of the notes are about to end and the notes aren’t much popular.
As of 31 March, 2023, the overall circulation of Rs 2000 notes add up to just 10.8% . The banknotes comprised of 80% in circulation when the denomination of 500 and 1000 currency notes was done back in 2016.
The Rs 2,000 denomination banknote was brought into use in November 2016 under Section 24(1) of RBI Act, 1934. The primary reason behind this was to meet the currency requirement of the economy in an instant manner after the withdrawal of all the 500 and 1000 banknotes which were in circulation at that time.
The purpose of introducing these notes was met once it became available in ample quantities. Hence, printing of the Rs 2000 notes were stopped in 2018-19.