RBI will keep the Rs 2,000 bills as legal tender despite their withdrawal
The RBI stated in a statement: “The 2,000 denomination banknote was created in November 2016 largely to fulfil the economy’s immediate need for currency following the withdrawal of legal tender status for all 500 and 1,000 banknotes then in circulation.
Additionally, it said that up until September 30, 2023, all banks must offer deposit and/or exchange services for 2,000 banknotes. Once banknotes in different denominations were widely available, the goal of introducing 2,000 banknotes was achieved. As a result, the printing of 2,000 banknotes was discontinued in 2018–19, according to the RBI.
According to the RBI, 89% of the 2,000-denomination banknotes were printed before March 2017 and are nearing the end of their 4-5 year expected lifespan.
“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 percent of notes in circulation) to Rs 3.62 lakh crore constituting only 10.8 percent of Notes in Circulation on March 31, 2023,” it stated.
The RBI further noted that the stock of banknotes in other denominations continues to be sufficient to meet the public’s need for money and that this denomination is not frequently used for transactions.
The Reserve Bank of India said that it had decided to stop printing banknotes in the denomination of 2,000 in light of the foregoing and in accordance with its “Clean Note Policy,” adding that these notes would still be accepted as legal money.
The public will have access to the facility for depositing and/or exchanging Rs. 2,000 bills until September 30.
Additionally, the institutions must abide by any applicable regulations for reporting suspicious and cash transactions, respectively.