Reserve Bank of India withdraws Rs2,000 banknotes

May 21, 2023 (MLN): The Reserve Bank of India (RBI) has decided to withdraw the Rs2,000 denomination banknotes from circulation. However, the existing notes will continue to be legal tender. 

The central bank has advised the public to deposit Rs2,000 banknotes, which were introduced after Rs500 and Rs1,000 notes were withdrawn during the demonetization exercise six years ago, into their bank accounts and /or exchange them into banknotes of other denominations at any bank branch, as Indian Express reported. 

The note was introduced in November 2016 to meet the currency requirement of the economy expeditiously after the legal tender status of Rs500 and Rs1,000 notes was withdrawn, it added. 

With the fulfillment of that objective, and once notes of other denominations were available in adequate quantities, the printing of Rs 2000 notes was stopped in 2018-19, it noted. 

It is important to note that Rs2,000 notes in circulation amount to $44.2 billion or 10.8% of currency circulation.

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