Read why RBI is withdrawing 2000rs notes from circulation
The Reserve Bank of India (RBI) has declared to discontinue the issue of 2,000rs notes. However, the notes will remain legal money, according to a circular issued by the central bank on Friday.
The Reserve Bank of India has stated banks to stop printing 2,000rs notes immediately. The central bank stated in a circular that all Rs 2,000 currency notes must be replaced by September 30, 2023.
Exchange your 2,000rs note till September 30:
“To complete the exercise in a time-bound manner and also to provide adequate time for members of the public, all banks shall provide deposit and/or exchange facilities for Rs 2000 banknotes until September 30, 2023,” the RBI circular stated.
The central bank has ordered citizens to exchange their 2,000rs notes till September 30, 2023.
Until September 30, all banks have been ordered to provide deposit or exchange facilities for Rs 2,000 banknotes.
The 2,000rs notes, on the other hand, will continue to be legal money.
The central bank further stated that beginning May 23, exchanges of 2,000rs notes into notes of other denominations can be prepared up to a maximum of Rs 20,000 at any branch to maintain operational convenience and avoid disruption of regular business.
RBI on issuing the 2000 notes:
Following the demonetisation of the Rs 1,000 and Rs 500 banknotes in November 2016, the Rs 2,000 denomination currency note was introduced.
The RBI stated that the goal of launching the 2,000rs notes was reached once currency in other denominations became accessible in sufficient quantities.
As a result, printing of Rs 2,000 banknotes was halted in 2018-19.
The RBI explained the move by saying, “Approximately 89% of the Rs 2000 denomination notes were issued before March 2017 and are nearing the end of their estimated life span of 4-5 years.”
The total value of these banknotes in circulation has fallen from Rs 6.73 lakh crore on March 31, 2018 (37.3% of Notes in Circulation) to Rs 3.62 lakh crore on March 31, 2023 (only 10.8% of Notes in Circulation).
It has also been seen that this denomination is not widely utilised for transactions. Furthermore, the stock of banknotes in various denominations remains sufficient to meet the public’s monetary needs.”
“On the basis of the above, and in pursuance of the Reserve Bank of India’s “Clean Note Policy,” the circular stated, “it has been chosen to withdraw the Rs 2000 denomination notes from circulation.”
The source of this news has been taken from INDIA TODAY.
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