RBI Notice: Rs 2000 Notes to be Withdrawn from Circulation, Remain Legal Tender Till 30th Sep 2023
In a surprising move, the Reserve Bank of India (RBI) has decided to junk Rs 2000 notes and announced that these notes will be withdrawn from circulation while remaining legal tender until September 30, 2023. The decision comes as the lifespan of the Rs 2000 notes nears its end and they constitute only 10.8% of the overall notes in circulation as of March 31, 2023.
Starting from May 23, 2023, the public will have the option to deposit Rs 2000 banknotes into their accounts or exchange them for banknotes of other denominations at any bank branch until the specified deadline. Each person will be subject to a Rs 20,000 exchange limit at a time.
The RBI has promptly instructed banks to cease the issuance of Rs 2000 denomination banknotes. However, they are required to facilitate the deposit and exchange of these notes until the specified deadline, in accordance with the central bank's "Clean Note Policy." This decision aims to improve currency management while upholding banking and financial discipline.
To ensure a smooth exchange process, the RBI has directed banks to make necessary arrangements to minimize inconvenience for senior citizens and persons with disabilities. Banks with Currency Chests have been instructed not to allow withdrawals of Rs 2000 notes from cash counters. Any balances of these notes will be deemed unfit and prepared for dispatch to RBI offices.
It is worth noting that the RBI had previously withdrawn certain denominations of notes from circulation in 2013-2014. The central bank emphasizes the importance of vigilance among banks in detecting and reporting counterfeit banknotes.
The withdrawal of Rs 2000 notes from circulation marks a significant step towards currency management, facilitating a seamless transition to other denominations. The public is advised to take note of the last date for exchanging these notes and the daily exchange limit, ensuring a convenient and hassle-free process.
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