The Reserve Bank of India (RBI) on Friday, May 19, announced that it has decided to withdraw the Rs 2,000 denomination bank notes from circulation. However, the apex bank said that the existing Rs 2,000 denomination bank notes will continue to be legal tender.
In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, the exchange of Rs 2,000 notes into notes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting from May 23, 2023, the central bank noted. Here are all the details and clarifications from the RBI.
1. Why are Rs 2,000 denomination banknotes being withdrawn?
The Rs 2,000 denomination banknote was introduced in November 2016 under Section 24(1) of the RBI Act, 1934 primarily with the objective to meet the currency requirement of the economy in an expeditious manner after withdrawal of the legal tender status of all Rs 500 and Rs 1,000 banknotes in circulation at that time. With the fulfilment of that objective and the availability of banknotes in other denominations in adequate quantities, the printing of Rs 2,000 banknotes was stopped in 2018-19.
A majority of the Rs 2,000 denomination notes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.
https://kapusangam.com/WP/your-questions-on-rs-2000-note-answered-as-rbi-declares-to-withdraw-it-from-circulation/https://kapusangam.com/WP/wp-content/uploads/2023/05/B0572BAB-C079-4187-89AC-D7BB6AE8602B.jpeghttps://kapusangam.com/WP/wp-content/uploads/2023/05/B0572BAB-C079-4187-89AC-D7BB6AE8602B-150x150.jpegadminLatestThe Reserve Bank of India (RBI) on Friday, May 19, announced that it has decided to withdraw the Rs 2,000 denomination bank notes from circulation. However, the apex bank said that the existing Rs 2,000 denomination bank notes will continue to be legal tender.
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