RBI withdraws Rs.2000 currency notes from circulation, to be still continued as legal tender

Remember the time when Rs.1000 and Rs.500 notes were demonetized and instead of that Rs.2000  notes were introduced. Seems like very soon you won’t be able to see the pink color notes in the market as the Reserve Bank of India (RBI) issued a notice on Friday advising the banks to stop issuing Rs.2000 denomination banknotes with immediate effect. RBI has also officially announced the same on Twitter.

As per the bank, Rs.2000 notes will be withdrawn from circulation, though the notes will continue to be legal tender.

₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk

— ReserveBankOfIndia (@RBI) May 19, 2023

RBI has also asked banks in the notice to provide deposit and/or exchange facilities for Rs.2000 notes until September 30, 2023. State Bank Of India has also asked people to deposit their Rs.2000 banknotes into their accounts or exchange them for banknotes of other denominations at any bank branch.

As per the notice issued by RBI, a person can exchange Rs.2000 banknotes up to Rs.20000 at a time would be available from May 23. According to a report by The Economics Times, the total value of Rs.2000 banknotes in circulation declined from Rs.6.73 lakh crore at its peak of March 31, 2018, to Rs.3.62 lakh crore constituting only 10.8% of notes in circulation on March 31, 2023.

According to the circular by RBI, “ The objective of introducing these notes was met once banknotes in other denominations became available in adequate quantities; therefore, the printing of Rs.2000 banknotes was stopped in 2018-19.”