Notebandi 2.0: Can Rs 2000 notes still be used for normal transactions? Learn!
PC: The News Minute
As Rs 2000 notes are at the end of their expected life span of 4-5 years and are not commonly used for transactions, the Reserve Bank of India (RBI) has decided to phase them out.
The central bank has asked the public to deposit Rs 2,000 into their bank accounts or swap it for banknotes at any bank branch, even though these notes will still be accepted as legal cash.
In order to ensure operational convenience and avoid disruption of regular activities of bank branches, Rs 2000 notes can be exchanged in other denominations at any bank with effect from May 23, 2023, to the extent of Rs 20,000 at a time.
PC: Times of India
"In order to complete the exercise in a time-bound manner and to provide sufficient time to members of the public, all banks shall provide deposit and/or exchange facility for ₹2000 notes by September 30, 2023," the banking regulator said. Separate guidelines have been issued to the banks.
From May 23, 2023, 19 regional offices of RBI will additionally provide the ability to swap Rs 2,000 notes up to a maximum of Rs 20,000 at a time.
RBI urged the general public to deposit or exchange their Rs 2000 notes before September 30, 2023. Additionally, it has directed banks to immediately stop printing Rs 2000 denomination notes.
PC: India Today
The introduction of the 2000 rupee banknote in November 2016 served to quickly meet the economy's need for cash following the demonetization of the 500- and 1000-denomination notes in use at the time.
According to the Reserve Bank of India, the target of launching banknotes in the 2000 denomination was achieved after an adequate supply of notes in other denominations became available. The printing of banknotes of this denomination was discontinued in 2018-19.
Before March 2017, about 89% of the Rs 2000 banknotes were printed. The total value of these banknotes in circulation has come down from the peak of ₹6.73 lakh crore as on March 31, 2018. This figure has come down to a low of ₹3.62 lakh crore as of March 31, 2023, which represents only 10.8% of the notes in circulation.