The Reserve Bank of India on Friday introduced withdrawal of Rs 2,000 currency notes from circulation, and current notes in circulation can both be deposited in financial institution accounts or exchanged by September 30.
Photograph: PTI Photo
The financial institution notes in Rs 2,000 denomination will proceed to be a authorized tender, the RBI stated in an announcement.
In order to guarantee operational comfort and to keep away from disruption of standard actions of financial institution branches, the RBI stated alternate of Rs 2,000 financial institution notes into financial institution notes of different denominations might be made up to a restrict of Rs 20,000 at a time at any financial institution beginning from May 23, 2023.
The RBI has suggested banks to cease issuing Rs 2,000 denomination banknotes with instant impact.
Besides, the power for alternate of Rs 2,000 financial institution notes up to the restrict of Rs 20,000 at a time shall be offered on the 19 Regional Offices (ROs) of the RBI having concern departments from May 23.
The Rs 2,000 denomination financial institution word was launched in November 2016, primarily to meet the currency requirement of the economic system in an expeditious method after the withdrawal of authorized tender standing of all Rs 500 and Rs 1,000 financial institution notes that had been in circulation at the moment.
Highlights
- Rs 2,000 currency notes to proceed to be authorized tender until September 30
- Rs 2,000 notes with public might be deposited in financial institution accounts or exchanged at banks and RBI’s 19 Regional Offices
- Deposits of Rs 2,000 notes into financial institution accounts might be made with out restrictions topic to compliance with extant Know Your Customer (KYC) norms and different necessities
- Public can alternate Rs 2,000 notes up to a restrict of Rs 20,000 at a time starting May 23
- Exchange of Rs 2,000 notes might be performed through banking corespondents for up to Rs 4,000 per day for an account holder
- Rs 2,000 word was launched after demonetisation in November 2016
- Unlike 2016 demonetisation, Rs 2,000 notes will proceed to be a authorized tender until September 30
- The withdrawal follows Rs 2,000 notes being reportedly used for hoarding black cash and cash laundering
- RBI had stopped printing of recent Rs 2,000 notes since 2018-19
- About 89 per cent of the Rs 2,000 notes had been issued prior to March 2017
- The complete worth of those financial institution notes in circulation declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to Rs 3.62 lakh crore (10.8 per cent of notes in circulation) as on March 31, 2023.
