India
RBI to Withdraw ₹ 2,000 Notes from Circulation
RBI has announced that it will withdraw Rs 2,000 currency notes from circulation. However, the notes will continue to be legal tender until September 30, 2023.
The Reserve Bank of India (RBI) has declared that it will stop printing and distributing Rs. 2,000 notes. The notes will continue to be valid for use, but by September 30, 2023, holders must deposit or exchange them for lower value bills.
Following the overnight abolition of high-value notes worth 1,000 and 500 rupees by Prime Minister Narendra Modi in November 2016, the RBI began printing the 2,000 rupee note. To make it simpler for people to transact in cash, the 2,000 note was introduced.
The RBI claimed that the goal had been accomplished now that sufficient numbers of banknotes in other denominations were available.
All banks have been instructed by the RBI to stop printing the 2,000 note right away. People can deposit or exchange their 2,000 rupee notes at any bank branch or one of the 19 regional offices of the RBI. A maximum of 20,000 will be allowed to exchange at once through the exchange facility.
“₹ 2,000 Notes to Be Withdrawn from Circulation by September 30, 2023”
RBI to Stop Issuing ₹ 2,000 Notes
The 2,000 note is not frequently used for transactions, according to the RBI. The estimated lifespan of the 2,000-rupee banknotes, which is four to five years, has come to an end for about 89% of them because they were printed before March 2017.
The total value of these banknotes in circulation decreased from a peak of 6.73 lakh crore as of March 31, 2018 (37.3 percent of notes in circulation) to a low of 3.62 lakh crore as of March 31, 2023, constituting only 10.8% of notes in circulation.
Similar efforts to remove notes from circulation were made by the RBI in 2013–2014. The RBI had at that point withdrawn all notes worth Rs. 500 and Rs. 1,000 that were older than ten years. The RBI claimed that the removal of these notes was required to raise the standard of in-use currency.
The economy is probably not significantly affected by the withdrawal of 2,000 yen notes. According to the RBI, it has an adequate supply of other denomination notes to meet the needs of the general public.