₹2000 banknotes withdrawan from circulation in India
However the currency will remain as Legal Tender - RBI
IH Web Desk
AGARTALA, May 19 2023: Reserve Bank of India in pursuance of its “Clean Note Policy” Friday withdrawn ₹2000 denomination banknotes from circulation. However the same currency will continue to be legal tender.
The RBI had undertaken a similar withdrawal of notes from circulation in 2013-2014. It announced members of the public may deposit ₹2000 banknotes into their bank accounts or exchange them into banknotes of other denominations at any bank branch.
In however cautioned that for sake of operational convenience and to avoid disruption of regular activities of bank branches, exchange of ₹2000 banknotes into banknotes of other denominations can be made upto a limit of ₹20,000 at a time at any bank starting from May 23 2023.
It may be mentioned that ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all ₹500 and ₹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. 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.
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