The Central Reserve Bank has decided to withdraw the ₹2000 note from circulation, although it will still be considered legal tender. Banks have been instructed by the Reserve Bank to allow the deposit and exchange of ₹2000 notes until September 30, 2023.
Additionally, the Central Reserve Bank has directed banks to cease the issuance of ₹2000 notes immediately. Starting from May 23, it will be possible to exchange notes ranging from ₹2000 to ₹20,000 in a single transaction at banks.
What You Should Do: If you possess ₹2000 notes, there is no need to worry. These notes are still valid. However, following the Reserve Bank’s decision, you will no longer be able to withdraw new ₹2000 notes from banks or ATMs. It is also necessary to exchange any old ₹2000 notes you may have with the bank. The Reserve Bank has set a deadline of September 30 for this exchange. No further details have been provided by the RBI regarding the course of action beyond this date.
Exchange Limit of ₹20,000: As per the Reserve Bank’s directive, you will have the opportunity to visit your bank and exchange up to ₹20,000 worth of ₹2000 currency notes by September 30. You can perform this exchange at any branch of your bank.
Origins from Demonetisation: It is worth mentioning that on November 8, 2016, the central government implemented demonetisation, banning the old ₹500 and ₹1000 notes. As a replacement, the Central Reserve Bank introduced new ₹500 and ₹2000 notes. However, over the years, the circulation of ₹2000 notes decreased, and most ATMs stopped dispensing them. Now, the Reserve Bank has announced their withdrawal.
According to the Reserve Bank, the printing of ₹2000 banknotes was discontinued during the 2018-19 financial year. Around 89% of the ₹2000 denomination banknotes were issued before March 2017.