Reserve Bank of India (RBI) announce withdrawal of Rs 2,000 currency notes from circulation but gave public time till 30th September 2023 to either deposit such notes in accounts or exchange them at banks.
So, the Rs 2,000 notes will continue to be a legal tender till 30th September 2023.
Reserve Bank of India (RBI) did not say what would be the status of 2,000 notes in private hands after 30th September 2023.
Government had made it an offence to hold the demonetised Rs 500 and 1,000 notes after expiry of the deposit deadlines.
Here are Full Details of what Reserve Bank of India said in its Press Release
- The Rs. 2000 denomination banknote was introduce 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 was met once banknotes in other denominations became available in adequate quantities. Therefore, printing of ₹2000 banknotes was stop in 2018-19.
- About 89% of the ₹2000 denomination banknotes were issue 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 decline from ₹6.73 lakh crore at its peak as on 31st March, 2018 (37.3% of Notes in Circulation) to ₹3.62 lakh crore constituting only 10.8% of Notes in Circulation on 31st March, 2023. It has also observe that this denomination is not commonly use for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.
- In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has decided to withdraw the ₹2000 denomination banknotes from circulation. The banknotes in Rs. 2000 denomination will continue to be legal tender.
- It may be note that RBI had undertaken a similar withdrawal of notes from circulation in 2013-2014.
- Accordingly, members of the public may deposit Rs. 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.
- In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs. 2000 banknotes into banknotes of other denominations can be made upto a limit of Rs. 20,000/- at a time at any bank starting from 23rd May, 2023.
- To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/or exchange facility for Rs. 2000 banknotes until 30th September, 2023. Separate guidelines have issue to the banks.
- The facility for exchange of Rs. 2000 banknotes upto the limit of Rs. 20,000/- at a time shall also be provided at the 19 Regional Offices (ROs) of RBI having Issue Departments from 23rd May, 2023.
- The Reserve Bank of India has advise banks to stop issuing Rs. 2000 denomination banknotes with immediate effect.
- Members of the public are encourage to utilise the time up to 30th September, 2023 to deposit and/or exchange the Rs. 2000 banknotes. A document on Frequently Asked Questions (FAQs) in the matter has been hosted on the RBI website for information and convenience of the public.