RESERVE BANK OF INDIA (RBI) HAS DECIDED TO WITHDRAW RS 2,000 DENOMINATION BANKNOTES FROM CIRCULATION
The Reserve Bank of India has decided to withdraw the Rs.2000 denomination banknotes from circulation but they will continue to remain as legal tender. It has advised banks to stop issuing Rs.2000 denomination banknotes with immediate effect. The Rs.2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, 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 banknotes in circulation at that time.
The Reserve Bank of India (RBI) on Friday decided to withdraw Rs 2,000 denomination banknotes from circulation. The central bank said that all Rs 2,000 currency notes must be exchanged before September 30, 2023.
The Reserve Bank of India (RBI) has decided to withdraw Rs 2,000 denomination banknotes from circulation. However, the notes will continue as legal tender, the central bank said in a circular on Friday.
The RBI has advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect. In a circular, the central bank said that all Rs 2,000 currency notes must be exchanged before September 30, 2023.
Main point :
- Immediately stop issuing 2000 notes in banks (to be taken in cash but not to be given in payment)
- This ban will come into force from 23rd May.
- Up to 20000 amount at a time exchanges allowed
- 2000 notes to customers 30.09.23 Have to deposit till.
“To complete the exercise in a time-bound manner and to provide adequate time for the members of the public, all banks shall provide deposit and/or exchange facilities for Rs 2000 banknotes until September 30, 2023,” the RBI circular read.
The central bank has asked citizens to exchange Rs 2,000 currency notes by September 30, 2023. All banks have been asked to provide deposit or exchange facilities for Rs 2,000 banknotes till September 30. However, the Rs 2,000 notes will remain legal tender.
The central bank also said in order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2,000 notes into notes of other denominations can be made upto a limit of Rs 20,000 at a time at any branch starting from May 23.
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