New Delhi: The Reserve Bank of India (RBI) on Friday announced that Rs 2,000 currency notes are being withdrawn from circulation. In the press release, RBI stated that this being done under its ‘Clean Note Policy’. The Central Bank said that all Rs 2,000 currency notes must be exchanged before September 30, 2023.
The clean note policy was adopted by the RBI to ensure the availability of good quality banknotes to the public. The policy aims to maintain the integrity of the Indian currency by removing damaged, counterfeit, or soiled notes from circulation.
“To complete the exercise in a time-bound manner and to provide adequate time for the members of the public, all banks shall provide deposit and/or exchange facilities for Rs 2000 banknotes until September 30, 2023,” stated the RBI circular.
The RBI also said it has been observed that Rs 2,000 denomination note is not commonly used for transactions. Further, the stock of bank notes in other denominations continues to be adequate to meet the currency requirement of the public.
The bank notes in Rs 2,000 denomination will continue to be a legal tender, it added. Legal tender refers to money that is legally valid for the payments of debts and that must be accepted for that purpose when offered.
The move comes amid concerns of Rs 2000 notes notes being used to hoard black money. The RBI had stopped printing Rs 2000 notes in 2018-19 and the notes were rarely in circulation.
The window to exchange Rs 2,000 notes will open on May 23, since the RBI wants to give banks time to make preparatory arrangements. The public can deposit Rs 2,000 bank notes into their bank accounts or exchange them into banknotes of other denominations at any bank branch. The facility to exchange Rs 2,000 notes will also be available at 19 regional offices of RBI. Exchange of a maximum of Rs 20,000 (10 notes of Rs 2,000) for other currency notes will be allowed at a time.