Rs 2,000 banknotes to be withdrawn, can be exchanged by September 30, 2023

The Reserve Bank of India (RBI) has decided to withdraw Rs 2,000 denomination banknotes from circulation and asked people to exchange or deposit them by September 30,2023. 

In a statement released on Friday, the central bank has stated: “In pursuance of the Clean Note Policy of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation. The banknotes in Rs 2000 denomination will continue to be legal tender. To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/or exchange facility for Rs 2000 banknotes until September 30, 2023.”

Explaining the move, the RBI has said: “About 89 per cent of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated lifespan of 4-5 years. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018, (37.3 per cent of notes in circulation) to Rs 3.62 lakh crore, constituting only 10.8 per cent of notes in circulation on March 31, 2023. 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.”

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