RBI withdraws ₹2000 note from circulation, to remain legal tender.

The Reserve Bank of India has decided to withdraw the ₹2000 denomination banknotes from circulation but they will continue to remain as legal tender. It has advised banks to stop issuing ₹2000 denomination banknotes with immediate effect. The ₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time.

₹2000 currency note will remain legal tender after 30th September too. RBI expects that 4 month time is enough for people to exchange notes with the banks. Most of the ₹2000 notes that are in circulation will return to banks within the given time frame of 30th September. This is a routine exercise of RBI and people need not panic," news agency ANI quoted citing sources.



Rs 2,000 notes were primarily introduced to quickly replenish earlier Rs 500 and Rs 1,000 notes, RBI Governor said. RBI Governor Mr. Shaktikanta Das appealed to the public not to rush to banks to exchange the Rs 2,000 notes. He said the public has time until September 30 for exchange and/or deposit of the Rs 2,000 notes. RBI Governor assured that impact on the economy on account of this decision to withdraw Rs 2,000 note will be "very very marginal". The Rs 2,000 notes comprised just 10.8% of the total currency in circulation.
Location: India

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