The Reserve Bank of India has made a very essential decision to withdraw ₹2,000 currency banknotes and discontinue its circulation. Only the existing notes in the market will hold the legal value, as per RBI’s announcement on Friday.
Now, RBI has requested the public to get their ₹2,000 banknotes exchanged from the banks with any other denomination or deposit it into their bank accounts. ₹2,000 currency note was launched by the Government after ₹500 and ₹1,000 banknotes were also withdrawn by the Government.
All the Common Questions on RBI Withdrawing ₹2,000 Currency Notes
Why RBI Decided to Withdraw ₹2,000 Banknotes?
₹2,000 currency banknotes were regulated in the market by the Reserve Bank of India in 2016, under Section 24(1) of The RBI Act, 1934. The primary objective was to fulfill the instant currency requirement which was created after the Central Bank had withdrawn ₹500 and ₹1,000 currency notes. When the demand was met back in 2018-19, the regulator stopped printing ₹2,000 currency notes.
The majority of ₹2,000 banknotes were printed in 2017 and the lifespan of these notes, which is 4-5 years, is now at an end.
“Given the above, and in pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation,” said RBI.
About Clean Note Policy
Clean Note Policy aims to keep healthy and good-conditioned currency notes in circulation, which also have new security features while withdrawing the soiled currency from the market. Earlier, RBI decided to withdraw the currency notes which were released before 2005. It’s because they had fewer security features compared to those printed and released after 2005.
Will the 2000 Banknotes Lose Their Legal Status?
As per RBI’s announcement, the 2000 banknotes will continue to hold their legal status. All the transactions with them will be legal and all payments received will be valid. But they are suggesting the citizens change or deposit all the ₹2,000 currency notes on or before September 30, 2023.
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What Will Happen to ₹2,000 Banknotes After September 30?
The regulator, RBI, has not yet disclosed what will happen to the ₹2,000 banknotes after September 30. However, experts believe that the instructions will be cleared before the deadline.
