KANCHI EXCELLENT

RBI on 2000 rupee note.

Date: 20-05-2023

The Reserve Bank of India (RBI) on Friday decided to withdraw Rs 2,000 denomination banknotes from circulation. The central bank said that all Rs 2,000 currency notes must be exchanged before September 30, 2023.

 

• The Rs 2,000 denomination currency note was introduced in November 2016 following the demonetisation of Rs 1,000 and the old Rs 500 banknotes. According to the RBI, the objective of introducing the Rs 2,000 banknotes was met once currency in other denominations became available in adequate quantities. As such, the printing of Rs 2,000 banknotes was stopped in 2018-19.

 

 

• Explaining the move, the RBI said, “About 89% of the Rs 2000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years. The total value of these banknotes in circulation has declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3% of Notes in Circulation) to Rs 3.62 lakh crore constituting only 10.8% of Notes in Circulation on March 31, 2023. It has also been observed that this denomination is not commonly used for transactions. Further, the stock of banknotes in other denominations continues to be adequate to meet the currency requirement of the public.”

 

 

• "In view of the above, and in pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation," the circular read.