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@Evening: 🗞️ Soft DeMo? RBI To Withdraw Currency Notes Of Rs 2,000 Denomination
➡️ Exchange notes until 30 September
Rs 2,000 notes will be pulled out from circulation, an RBI circular said Friday (19 May).
The notes will stay legal tender, according to the central bank.
Banks have been asked to offer deposit and/or exchange service for Rs 2,000 notes until 30 September.
Banknote holders can exchange or deposit Rs 2,000 banknotes at any bank branch.
Deposits can be made without restrictions, following standard procedures and statutory provisions.
The exchange of Rs 2,000 notes into those of other denominations can be made up to a limit of Rs 20,000 at a time, starting from 23 May.
>> The move is in compliance with the Reserve Bank of India's "Clean Note Policy," as per the circular.
Origins. The Rs 2,000 note was launched in November 2016, via Section 24(1) of the RBI Act.
It came as a quick-fix to meet cash needs after the withdrawal of legal tender status for the Rs 500 and Rs 1,000 notes.
The printing of Rs 2,000 banknotes was discontinued in 2018-19 as other denominations became available in adequate quantities.
On the wane. The value of Rs 2,000 banknotes in circulation has fallen considerably over the years.
It dropped from a peak of Rs 6.73 lakh crore on 31 March 2018 to Rs 3.62 lakh crore as on 31 March 2023.
That's down from 37.3 per cent of notes in circulation to 10.8 per cent during that period.
About 89 per cent of the Rs 2,000 banknotes were issued prior to March 2017 and are at the end of their estimated life span of 4-5 years.
It has also been observed that this denomination is not commonly used for transactions, RBI said.
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