Following a review, the Reserve Bank of India (RBI) stated on May 19th that it would withdraw Rs 2,000 banknotes from circulation. However, it was emphasised that the Rs 2,000 notes would be legal tender until September 30th, 2023, according to in an RBI release.
The withdrawal of the Rs 2,000 banknotes is in accordance with the Reserve Bank of India’s “Clean Note Policy.” The Reserve Bank of India has advised the general public to deposit their Rs 2,000 banknotes into their bank accounts or swap them for banknotes of other denominations at any bank branch.
Depositing the Rs 2,000 banknotes into bank accounts is not restricted and can be done in compliance with current instructions and any statutory provisions, according to the RBI’s announcement.
The RBI has set a limit of Rs 20,000 for the exchange of Rs 2,000 banknotes into banknotes of other denominations to maintain smooth operations and minimise delays in regular banking transactions. Starting May 23rd, 2023, this exchange will be available at any bank branch.
The RBI’s decision is intended to simplify cash circulation and encourage the use of lesser denominations in everyday transactions. It allows individuals to change their Rs 2,000 banknotes into smaller amounts, promoting effortlessness of use and convenience in various kinds of transactions.
By encouraging the deposit or exchange of Rs 2,000 banknotes, the RBI is ensuring the continuity of legal tender status for these banknotes while also maintaining an efficient and organised monetary system.
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