RBI Withdraws Rs 2,000 Notes, To Remain Legal Tender; Exchange Facility Available Till September 30
RBI Withdraws Rs 2,000 Notes, To Remain Legal Tender; Exchange Facility Available Till September 30
The Reserve Bank of India (RBI) has announced that it will be withdrawing Rs 2,000 notes from circulation. The notes will still be legal tender, but they will no longer be issued by the RBI. The exchange facility for Rs 2,000 notes will be available till September 30, 2023.
The RBI said that the decision to withdraw the Rs 2,000 notes was taken in accordance with its “Clean note policy”. The central bank said that it has been issuing new Rs 500 and Rs 200 notes since 2017, and that the Rs 2,000 notes have now reached the end of their lifespan.
The RBI has advised the public to deposit the Rs 2,000 notes into their bank accounts or exchange them for other denominations of notes at any bank branch. The exchange facility will be available till September 30, 2023. After that date, the Rs 2,000 notes will no longer be accepted as legal tender.
The RBI has also advised banks to stop issuing Rs 2,000 notes with immediate effect.
The withdrawal of the Rs 2,000 notes comes six years after they were introduced in November 2016, along with the demonetisation of Rs 500 and Rs 1,000 notes. The Rs 2,000 notes were introduced to meet the urgent requirement of cash in the economy at the time.
The RBI said that the decision to withdraw the Rs 2,000 notes will not have any impact on the availability of cash in the economy. The central bank said that it has adequate stocks of other denominations of notes, and that it will continue to print new notes as required.
The RBI has also said that it will continue to monitor the situation and take further action as necessary.
Here are some key takeaways from the RBI’s announcement:
- The Rs 2,000 notes will be withdrawn from circulation, but they will remain legal tender.
- The exchange facility for Rs 2,000 notes will be available till September 30, 2023.
- After September 30, 2023, the Rs 2,000 notes will no longer be accepted as legal tender.
- Banks have been advised to stop issuing Rs 2,000 notes with immediate effect.
The RBI’s decision to withdraw the Rs 2,000 notes is a significant development. It remains to be seen how the public will react to the news.
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