Demonetisation: RBI to withdraw Rs 2000 notes from circulation

The Reserve Bank of India on Friday announced withdrawal of Rs 2000 currency notes from circulation, and existing notes in circulation can either be deposited in bank accounts or exchanged by September 30

THE RESERVE Bank of India (RBI) Friday announced the withdrawal of its highest value currency note, Rs 2,000, from circulation, adding that the notes will continue to be legal tender. It said the existing Rs 2,000 notes can be deposited or exchanged in banks until September 30, but set a limit of “Rs 20,000 at a time”.

Reserve Bank of India’s (RBI)
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The central bank advised the public to deposit Rs 2,000 notes — introduced during demonetisation in November 2016, when Rs 500 and Rs 1,000 notes were withdrawn — into their bank accounts and/ or exchange them into notes of other denominations at any bank branch. It also advised banks to stop issuing Rs 2,000 notes with immediate effect.

“In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2,000 banknotes can be made up to a limit of Rs 20,000 at a time, at any bank starting from May 23,” it said.

“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 2,000 banknotes until September 30, 2023,” it said.

“Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions,” the RBI said.

The facility for exchange of Rs 2,000 notes, up to the limit of Rs 20,000 at a time, will also be provided at the 19 regional offices of the RBI having issue departments from May 23.

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