The RBI removes the 2000 note from circulation while maintaining legal tender

According to the RBI, up until September 30, 2023, people can continue to deposit rupee 2000 banknotes into their bank accounts and/or swap them for notes of other denominations at any bank branch.

The 2000 rupee banknotes will no longer be in circulation, but they will still be accepted as legal money. This decision was made by the Reserve Bank of India. It has instructed banks to immediately stop issuing banknotes with a value of 2000. In November 2016, the 2000 denomination banknote was launched in accordance with Section 24(1) of the RBI Act, 1934, principally to swiftly address the economy’s need for cash following the withdrawal of the legal tender status of the 500 and 1000 banknotes in use at the time.

“The 2000 currency note will continue to be valid after September 30, too. The RBI anticipates that four months will be sufficient for people to swap notes with banks. The majority of the 2000-euro notes in use will be returned to banks by September 30th, as promised. People shouldn’t panic since this is a standard RBI operation, according to sources quoted by the news agency ANI.

“Once banknotes in other denominations became available in sufficient quantities, the objective of introducing 2000 banknotes was met,” RBI stated in a statement.

“In 2018–19, the production of 2000-yen banknotes was halted.A little over 89% of the banknotes in the denomination of 2000 were printed before March 2017 and are nearing the end of their 4-5 year expected lifespan. The total value of these banknotes in circulation has decreased from its peak of 6.73 lakh crore as of March 31, 2018 (37.3% of Notes in Circulation) to its lowest point of 3.62 lakh crore as of March 31, 2023, which represents only 10.8% of Notes in Circulation. Additionally, it has been noted that transactions using this denomination are uncommon, according to the statement.

Additionally, according to the RBI, the supply of banknotes in other denominations is still sufficient to meet the public’s need for currency.

In light of the foregoing and in accordance with the Reserve Bank of India’s “Clean Note Policy,” it has been decided to stop issuing banknotes with the denomination of 2000.The 2000-denomination bills will still be accepted as legal money. It should be noted that the RBI removed comparable notes from circulation in 2013–2014.

Therefore, customers can deposit 2000 yen bills into their accounts or exchange them for bills of other denominations at any bank branch. Deposits into bank accounts may be done normally, that is, without limits and according to current directives and other relevant legal constraints, according to a statement from the RBI.

Starting on May 23, 2023, any bank will allow the exchange of 2000 rupee notes into notes of other denominations up to a limit of 20,000 rupees at a time in order to maintain operational convenience and prevent disrupting the routine operations of bank branches.