The Rs 2,000 denomination bank notes will no longer be in circulation, the Reserve Bank of India (RBI) announced on Monday. The current Rs 2,000 banknotes will still be accepted as legal tender, according to the apex bank.
Starting on May 23, 2023, any bank will allow the exchange of Rs 2,000 notes into notes of other denominations up to a cap of Rs 20,000 at a time, the central bank noted, in order to ensure operational convenience and prevent disruption of regular activities of bank branches.
The decision to remove Rs 2,000 notes is a part of the central bank’s currency management effort, according to RBI Governor Shaktikanta Das. According to him, the primary purpose of the Rs 2,000 notes was to swiftly replace older Rs 500 and Rs 1,000 notes following the 2016 demonetisation.
He continued by saying that there are currently enough notes in circulation in other denominations and that the printing of these notes has been completely halted.
Das assured that the withdrawal of the Rs 2,000 note will have a “very very marginal” impact on the economy. Only 10.8% of the currency in circulation was made up of Rs 2,000 notes.
“RBI Governor Das Says Decision Will Have ‘Very Very Marginal’ Impact on Economy”
RBI Urges Customers to Act Before September 30
Customers have until September 30 to exchange their Rs 2,000 notes or transfer the money to their bank accounts, so Das urged them not to rush to the banks. He continued by saying that non-resident Indians (NRIs), including those with H-1B visas, won’t encounter any difficulties in this regard.
He further clarified that despite the order for a withdrawal of Rs 2,000 notes, these notes are still valid forms of payment. Das added that businesses must accept these notes without objecting.
The RBI occasionally issues new notes in place of notes from a specific series, he said. The Rs. 2000 notes are being taken out of circulation, but they remain valid forms of payment.
For customers who want more information about the withdrawal of Rs 2,000 notes, the RBI has also established a helpline number. The hotline can be reached at 1800 22 77 88.