Reserve Bank of India withdraw Rs.2000 bank notes

22/05/2023

Table of Contents

Reserve Bank of India withdraw Rs.2000 bank notes

The Reserve Bank of India (RBI) has officially declared that it is going to withdraw Rs 2,000 denomination banknotes from circulation. RBI has also informed that the notes are continuing as legal tender.

The RBI has asked banks to stop issuing Rs 2,000 denomination banknotes with immediate effect. Reserve Bank of India advised to all that Rs 2,000 currency notes must be exchanged before September 30, 2023 through circular.

₹2000 denomination banknote was brought in circulation in November 2016 under Section 24(1) of RBI Act, 1934. With fulfillment of the objective of introduction of ₹2000 denomination and availability of banknotes in other denominations in adequate quantity, printing of ₹2000 banknotes was stopped in 2018-19.

Action plan to implement the decision:

Handling of existing stock and receipts:

RBI asked all banks to discontinue issue of ₹2000 denomination banknotes with immediate effect. RBI has notified ATMs/Cash Recyclers also about this decision.
Currency Chests (CCs), which are held by banks, must be supervised to not to withdraw ₹2000 denomination the CCs. All cash from CCs will be considered as classified as unfit and it must dispatch to respective RBI offices.
The instructions have already included in RBI’s Master Direction dated April 03, 2023on detection, reporting and monitoring of counterfeit notes shall be meticulously followed.

Facility for Deposit and Exchange:

The facility for deposit and/or exchange of ₹2000 banknotes shall be available for members of the public up to September 30, 2023.
Deposit of ₹2000 banknotes into accounts is permissible in the usual manner without any restrictions and subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory requirements.
All banks will exchange ₹2000 banknotes up to a limit of ₹20,000/- at a time.
Business Correspondents (BCs) will be allowed to exchange ₹2000 banknotes upto a limit of ₹4000/- per day for an account holder.
Jan Dhan Yojna Accounts / Basic Savings Bank Deposit (BSBD) Account has the usual limits for crediting the value of ₹2000 notes.

Replenishment of Stock of Other Denominations for Exchange:

Branches and currency chests should estimate their cash requirement and obtain banknotes of other denominations from the linked or nearby currency chest or RBI well in time.