20 May , 2023 By : Debdeep Gupta
The Reserve Bank of India (RBI) on May 19 said it is withdrawing Rs 2,000 notes from circulation. The central bank also advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect.
However, the banknotes in Rs 2,000 denomination will continue to be legal tender, the RBI said in a release. The RBI has advised the public to deposit Rs 2,000 banknotes into their bank accounts or exchange them for banknotes of other denominations at any bank branch.
Here are the most common questions answered by people having Rs 2,000 banknotes kept at home for emergencies or in business for regular transactions.
Why are Rs 2,000 denomination banknotes being withdrawn?
The Rs 2,000 denomination banknote was introduced in November 2016, primarily with the objective of meeting the currency requirement of the economy expeditiously after the demonetization of all Rs 500 and Rs 1,000 banknotes in circulation at that time. A majority of the Rs 2,000 denomination notes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years. The printing of Rs 2,000 banknotes was stopped in 2018-19. The Reserve Bank of India has observed, that this denomination is not commonly used for transactions.