New Delhi: The Reserve Bank of India (RBI) has decided to withdraw Rs 2000 notes from circulation as it is not commonly used for transactions.
The central bank has asked banks to stop issuing the pink notes with immediate effect though the Rs 2000 notes would continue to be legal tender. Banks have been directed to deposit and/or exchange the notes till that date.
“Exchange facility for Rs 2,000 bank notes up to Rs 20,000 at a time would be available from May 23,” the RBI said in a statement Friday.
It said the notes were 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 1000 bank notes in circulation at that time”.
The objective of introducing the notes was met once bank notes in other denominations became available in adequate quantities, the bank said, adding the printing of the notes was stopped in 2018-19.
About 89% of the notes were issued prior to March 2017 and are at the end of their estimated lifespan of four to five years. With gradual decline, the notes constituted only 10.8% in circulation on 31 March, 2023.
“It has also been observed that this denomination is not commonly used for transactions. Further the stock of bank notes in other denominations continues to be adequate to meet the currency requirement of the public,” the statement read.
The central bank said in pursuance of its “Clean Note Policy”, it was decided to withdraw the notes.
RBI has, therefore, asked the people to deposit the Rs 2,000 notes into their bank accounts and/or exchange them into bank notes of other denominations at any bank branch. “In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2,000 bank notes can be made up to a limit of Rs 20,000 at a time at any bank starting from 23 May, the RBI statement said.
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