The Reserve Bank of India (RBI) has announced a big break that Rs. 2000 denomination bank notes will be out of the economy soon. Though the RBI stopped the printing of the Rs. 2000 notes, the apex bank announced that they are going to withdraw the note completely from circulation. However, it will be continued as a Legal Tender.
The Reserve Bank of India announced that the facility for deposit and/or exchange of rupee 2000 banknotes will be accessible to the general public from May 23, 2023 to September 30, 2023. Also, the facility to exchange will be provided to the public through all branches of the banks.
In Pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, the Rs. 2000 denomination banknotes shall be withdrawn from the circulation. As per the notification, all banks may exchange ₹2000 banknotes up to a limit of ₹20,000 at a time. This is to avoid the disruption and for the operational convenience.
Business Correspondents (BCs) may also be permitted to convert up to a total of Rs. 4,000 worth of currency for an account holder each day. Banks may, at their discretion, increase the BCs’ cash holding limitations for this purpose.
In response to the economy’s acute need for money following the revocation of the legal tender status of the Rs. 500 and Rs. 1000 bank notes, which the Indian people will never forget, the Rs. 2000 bank notes were issued in November 2016.
The RBI claims that the objective of the official introduction of the Rs. 2000 notes was achieved and that there are sufficient supplies of banknotes in other denominations. As a result, from 2018 to 2019, no fresh Rs. 2000 notes were printed.
The apex bank has directed all the banks to take necessary actions to help the customers and also to make special arrangements for the senior citizens, persons with disabilities and women.
Support our journalism by subscribing to Taxscan Premium. Follow us on Telegram for quick updates.
