New Delhi: The Reserve Bank of India (RBI) on Friday said that it is withdrawing banknotes of Rs 2,000 denomination from circulation.
However, this will continue to remain as legal tenders, which means that Rs 2,000 banknotes will continue to remain a valid currency and people who have these banknotes could continue to use it in transactions, till it ‘dries up’ from markets.
The RBI notification on withdrawing & ‘discontinuing’ Rs 2000 means that this currency won’t be published anymore and over a period of time, it will be completely withdrawn from circulation, in a time-bound manner.
Once this comes into effect, Rs 500 will become the currency with highest denomination.
RBI guidelines for depositing Rs 2,000 banknotes
The RBI has also issued guidelines on how customers with Rs 2,000 can exchange their bank notes. Below are the guidelines:
# Accordingly, members of the public may deposit ₹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. 7.
#In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of ₹2000 banknotes into banknotes of other denominations can be made upto a limit of ₹20,000/- at a time at any bank starting from May 23, 2023
# To complete the exercise in a time-bound manner and to provide adequate time to the members of public, all banks shall provide deposit and/or exchange facility for ₹2000 banknotes until September 30, 2023. Separate guidelines have been issued to the banks. 9.
# The facility for exchange of ₹2000 banknotes upto the limit of ₹20,000/- at a time shall also be provided at the 19 Regional Offices (ROs) of RBI having Issue Departments1 from May 23, 2023. 10.
# The Reserve Bank of India has advised banks to stop issuing ₹2000 denomination banknotes with immediate effect. 11.
# Members of the public are encouraged to utilise the time up to September 30, 2023 to deposit and/or exchange the ₹2000 banknotes.