As per the announcements by the apex bank, the Reserve Bank of India (RBI) Rs 2000 denomination banknotes will be withdrawn from circulation. The announcements also say that while these notes will discontinue, the existing notes will remain to be legal tender. Now the real question is, why has RBI taken this decision?
The Reason
The Rs 2,000 denomination banknotes were first welcomed in the month of November, 7 years ago, that is, in the year 2016. These notes were introduced under Section 24(1) of The Reserve Bank of India (RBI) Act of 1934. The objective behind introducing such notes was to meet the currency needs of the economy. The economy was in requirement of the notes post the withdrawal of the legal tender status of the banknotes of denomination of Rs 500 and Rs 1000. Once the Rs 2000 notes were in optimum quantity in the economy and the requirements were met, it was in the years 2018 and 2019 when the printing of Rs 2000 notes ceased.
The majority of the Rs 2000 banknotes were issued by the Reserve Bank of India before March 2017. Currently, these notes are on the brink of their end as per their estimated 4-5 year lifespan. It is interesting to note that the denomination is not presently used so commonly for transactions, as there is an ample stock of other denomination banknotes circulating.
ALSO READ: What is the cost of printing 200, 500, and 2000 rupees notes in India?
Have a look at what the Reserve Bank of India tweeted on May 19, and the attached press release.
₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk
— ReserveBankOfIndia (@RBI) May 19, 2023
The Clean Note Policy
The aim of the Clean Note Policy is to provide fine-quality currency coins and notes, having enhanced security features to the public. The Policy has withdrawn soiled notes from circulation. Earlier, the apex bank had been all set to withdraw all the banknotes that have been issued before 2005, since they have fewer security features in comparison to the present-day bank notes.
This, however, could not happen, as the banknotes that were issued prior to the year 2005 still do remain in continuation to be legal tender.
What to do with the Rs 2000 banknotes you have?
The Reserve Bank of India advises people to reach out to bank branches for deposit or exchange of the Rs 2000 denomination banknotes you have. The Reserve Bank of India states that the facility of exchange of banknotes of the denomination of Rs 2000 will remain available at all the banks till September 30, 2023. This facility will be available until same until September 30 as well in the 19 RBI Regional Offices having Issue Departments.
ALSO READ: What is the RBI's E-Rupee? Everything you need to know about the CBDCs!
Comments
All Comments (0)
Join the conversation