RBI Withdraws Rs 2,000 Currency Notes from Circulation; Exchange Facility Available Till September 30

New Delhi: The Reserve Bank of India (RBI)  on Friday announced regarding phasing out Rs 2,000 currency notes from circulation.

According to the RBI statement, these notes will continue to be considered legal tender until September 30.

This decision marks a significant step in the currency management strategy of the RBI.

To ensure a smooth transition, the RBI has instructed banks to provide deposit and/or exchange services for Rs 2,000 notes until September 30, 2023. This move allows individuals holding these notes to either deposit them in their bank accounts or exchange them for other denominations. By setting a deadline for the deposit and exchange process, the RBI aims to gradually phase out the Rs 2,000 notes from the market.

In line with this development, the RBI has also advised banks to stop issuing Rs 2,000 notes with immediate effect. This means that banks will no longer distribute these notes to customers during transactions or ATM withdrawals. Instead, the focus will be on introducing other denominations to meet the currency requirements of the public.

To facilitate the exchange process, the RBI has further announced that individuals can avail themselves of the exchange facility for Rs 2,000 bank notes up to a maximum limit of Rs 20,000 at a time. Starting from May 23, this service will allow individuals to convert their Rs 2,000 notes into lower denominations or other forms of currency. The intention behind this arrangement is to provide convenience to individuals and manage the transition effectively.