The INR 2000 rupee note will be withdrawn from circulation but will continue to remain as legal tender, decided the Reserve Bank of India. By September 30, 2023, these notes can be deposited in banks and notes of other amounts can be taken.
The RBI has advised banks to stop issuing INR 2000 denomination banknotes with immediate effect. In November 2016, the INR 2000 denomination banknote was introduced under Section 24(1) of RBI Act, 1934, to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all INR 500 and INR 1000 banknotes in circulation at that time.
“The objective of introducing ₹2000 banknotes were met once banknotes in other denominations became available in adequate quantities," RBI said in a statement.
“The printing of ₹2000 banknotes was stopped in 2018-19.About 89% of the ₹2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to ₹3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. It has also been observed that this denomination is not commonly used for transactions," the statement further said.
“Accordingly, members of the public may deposit ₹2000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions," RBI said in a statement.
To avoid disruption of regular activities of bank branches and to ensure operational convenience, exchange of INR 2000 banknotes into banknotes of other denominations can be made up to a limit of INR 20,000/- at a time at any bank starting from May 23, 2023.
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