New Delhi/Chennai, May 19: The Reserve Bank of India (RBI) Friday said that it will withdraw the Rs 2000 denomination banknote from circulation but it will continue as legal tender.
In a statement, the RBI said: “The 2000 denomination banknote was introduced in November 2016 primarily to meet the currency requirements of the economy in an expeditious manner after the withdrawal of legal tender status of all 500 and 1000 banknotes in circulation at that time.”
It also said that all banks should provide deposit and or exchange facilities for 2000 banknotes until September 30, 2023.
The RBI said it would withdraw all the Rs 2000 banknotes as a part of its clean note policy.
According to the RBI, people may deposit Rs 2000 banknotes into their bank accounts and or exchange them into banknotes of other denominations at any bank branch.
“Deposit into bank accounts can be made in the usual manner, that is, without restrictions and subject to extant instructions and other applicable statutory provisions,” RBI said.
The central bank said in order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of Rs 2,000 banknotes into notes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.
The RBI said that banks may exchange Rs 2000 banknotes up to a limit of Rs 20,000 (10 notes per account holder) at a time from an account holder so that the inconvenience to the public is minimised.
It said that the facility for exchange of Rs 2000 banknotes would be provided to people by all banks through their branches.
The RBI has given banks till May 23 to get ready to exchange the Rs 2000 notes while deposits of the notes are accepted in usual manner.