New Delhi, 19th May 2023: The Reserve Bank of India has announced its decision to withdraw all the Rs. 2000 denomination notes from the Indian markets. The government will stop the circulation of these notes from September 30,2023. The public has been asked to get their money exchanged till then. The Rs 2,000 notes, however, will continue to be legal tender.
The move is said to be taken in accordance with the ‘Clean Note Policy’ after the government had already stopped the printing of the notes in 2019. RBI officials explained their move to the public in a statement released and said that the total value of Rs.2000 banknotes in circulation has declined from ₹6.73 lakh ₹3.62 lakh crore constituting only 10.8% of the notes in Circulation on March 31, 2023.
They also observed that notes with Rs.2000 denominations were rarely used for day to day transactions. Moreover the stock of banknotes in other denominations proved to be sufficient for public convenience to carry out daily transactions.
The public has now been given a choice to either deposit Rs 2,000 banknotes into their bank accounts or exchange them into banknotes of other denominations at any bank branch.
