Why has Rs. 2000 Notes withdrawn? Here is what you need to know
According to Economics Times news, The Rs 2,000 banknotes will no longer be in circulation, the Reserve Bank of India (RBI) stated on Friday, May 19. By September 30, 2023, the central bank requested that all 2,000 rupee notes be deposited into accounts or exchanged for notes of other denominations at any bank branch. There are no restrictions on how you deposit money into a bank account. The RBI announced that the exchange service for Rs 2,000 notes will begin on May 23, 2023.
If It will continue as a legal tender then why should I exchange it?
— দেবাশীষ|🇮🇳 (@DebasishWrites) Why are 2000rs notes being withdrawn? According to Indian Express news, The introduction of the 2000-denomination banknote in November 2016 was made possible by Section 24(1) of the RBI Act, 1934, with the primary goal of quickly addressing the economy need for currency following the withdrawal of the legal tender status of all 500- and 1000-denomination banknotes in use at the time. The printing of notes in the denomination of 2000 was discontinued in 2018–19 due to the achievement of that goal and the availability of notes in other denominations in sufficient quantities.
Then the RBI issues the majority of Rs 2000 notes prior to March 2017 and now the 2000rs banknotes were at the end of their estimated lifespan of 4 to 5 years. These banknotes was no more commonly used for transactions. Thats why in the pursuance of the Clean Note Policy (Clean Note Policy is to give public good-quality currency notes and coins with better Security Features.) of RBI, it has been decided ti withdraw the Rs 2000 Denomination banknotes from circulation said RBI.
What should you do with the Rs 2000 notes you have? The RBI has advised people to “approach bank branches for deposit and/ or exchange” of these banknotes. “The facility for deposit into accounts and exchange for Rs 2000 banknotes will be available at all banks until September 30, 2023,” the RBI has said.