Rs 2000 notes withdrawn from circulation, to be exchanged by September 30: RBI
The bank notes in Rs 2,000 denomination will continue to be a legal tender, the RBI said in a statement
By Newsmeter Network Published on 19 May 2023 2:18 PM GMT
Mumbai: The Reserve Bank of India announced withdrawal of Rs 2,000 currency notes from circulation, and existing notes in circulation can either be deposited in bank accounts or exchanged by September 30.
Those notes which are in the market can be deposited or exchanged in the bank.
The bank notes in Rs 2,000 denomination will continue to be a legal tender, the RBI said in a statement.
₹2000 Denomination Banknotes – Withdrawal from Circulation; Will continue as Legal Tenderhttps://t.co/2jjqSeDkSk
— ReserveBankOfIndia (@RBI) May 19, 2023
Process of exchange from May 23
In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, the RBI said exchange of Rs 2,000 bank notes into bank notes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.
The RBI has advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect.
Besides, the facility for exchange of Rs 2,000 bank notes up to the limit of Rs 20,000 at a time will be provided at the 19 Regional Offices (ROs) of the RBI having issue departments from May 23.
The Rs 2,000 denomination bank note was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all Rs 500 and Rs 1,000 bank notes that were in circulation at that time.
The printing of Rs 2000 notes was stopped in 2018-19. There were constant talks that the Rs 2000 note would be withdrawn from the market.
Government records
According to the Annual Reports of RBI presented before the Parliament by Finance Minister Nirmala Sitharaman in March 2023 said that the total value of Rs 500 and Rs 2,000 denomination bank notes in circulation as at end-March 2017 and as at March-end 2022 was Rs 9.512 lakh crore and Rs 27.057 lakh crore, respectively.
Is this going to bring out black money?
Those who have unaccounted income statched in the form of Rs 2000 will have to tender the money back to the bank. Or will they distribute it with their family and friends and divide it like it was done during demonitization. The coming days will tell.
Inputs from PTI
