RBI withdrawn Rs 2000 notes: The Reserve Bank of India (RBI) stated that currency notes having a value of Rs 2,000 would be taken out of circulation. The public was urged to swap or deposit these notes in their bank accounts by September 30.

Beginning on May 23, currency exchange will be available at bank locations. For currency exchanges, the central bank has established a maximum of Rs 20,000. This indicates that 10 banknotes with a value of Rs 2,000 can be exchanged at once.

Why has the RBI withdrawn Rs 2,000 notes?

The Rs 2000 note was released in November 2016 in accordance with Section 24(1) of The RBI Act, 1934, principally with the aim of swiftly addressing the economy’s need for money following the withdrawal of the legal tender status of the Rs 500 and Rs 1000 notes. The printing of Rs 2000 notes was discontinued in 2018–19 once that goal was achieved and sufficient supplies of notes in other denominations were on hand.

Prior to March 2017, the RBI released the majority of the Rs 2000 notes; these notes have now reached the end of their anticipated lifespan of 4-5 years. There is an adequate supply of banknotes in other denominations to meet cash needs, and this denomination is no longer frequently used for transactions.

The Reserve Bank of India said that it had decided to remove the Rs 2000 denomination banknotes from circulation in light of the foregoing and in accordance with its “Clean Note Policy.”

What is the Clean Note Policy?

Soiled notes are taken out of circulation as part of the Clean Note Policy, which aims to provide the public with high-quality currency notes and coins with improved security features. Because they have fewer security safeguards than banknotes printed after 2005, the RBI has previously decided to remove all banknotes created before 2005 from circulation.

The older notes, however, are still valid forms of payment. They have only been taken out of circulation in accordance with the accepted international practise, which prohibits the simultaneous circulation of notes from various series.

Will the Rs 2000 banknotes continue to be legal tender?

According to the RBI, the Rs 2000 banknote would continue to be accepted as legal money. The general public is still permitted to transact with and accept payments in Rs 2000 banknotes. The RBI stated that they were “encouraged” to deposit and/or exchange these banknotes by September 30, 2023.

No ID proof, requisition slip required to exchange ₹2,000 notes, says SBI

On Sunday, the State Bank of India announced that clients could swap bank notes with denominations ranging from 2,000 to 20,000 at any of its locations without needing a request slip. Additionally, the tenderer will not be required to provide identification documentation at the time of note exchange.

Bye bye, Rs 2,000 banknote! things to know about the bill that has been in circulation for 6 years

Withdrawal of the Rs 2,000 note: The RBI will begin removing 2,000-rupee notes from circulation. But don’t worry! The 2,000 bill will still be accepted as payment. The Rs 2,000 note will be available for deposit at the bank or exchange up to 10 (Rs 20,000) at once.

Things to know about the bill that has been in circulation for 6 years is given below:

• Is there a limit on how much money you can exchange or deposit?

Up to 20,000 Rs. worth of Rs 2000 bills can be exchanged at once. You don’t have to go to your own bank; a non-account holder of the bank may exchange Rs 2000 banknotes at any bank branch up to a maximum of Rs 20,000 at a time.

Another option for exchanging Rs 2000 banknotes is through business correspondents, with a daily cap of Rs 4000 for account holders.

The RBI has stated that there are no limits on deposits into bank accounts “subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory / regulatory requirements.”

• When can you start exchanging the Rs 2000 notes?

People are encouraged to visit RBI branches or ROs starting on May 23 to exchange their notes so that banks can get ready.

• RBI 2,000-rupee note exchange/deposit last date

Between May 23 and September 30, customers will be able to deposit their Rs 2,000 notes or swap them for smaller ones, according to a statement from the RBI.

• When was 2,000-rupee banknote introduced?

The government announced the demonetization of the Rs. 500 and Rs. 1,000 notes in November 2016, at which point the Rs. 2,000 note was released.

• Why was the Rs 2,000 note issued?

The unexpected withdrawal of the Rs. 500 and Rs. 1,000 notes as part of the demonetisation push prompted the issuance of the Rs. 2,000 currency note to satisfy the needs of the Indian economy.

• Did the Rs 2,000 serve its purpose?

Yes, the objective was accomplished as soon as enough notes in other currencies were circulated.

• Was the Rs 2,000 notes being printed all this while?

No, in the 2018–19 fiscal year, the printing of the Rs 2,000 note was halted.

• Is this the first such move?

No, the RBI has already carried out a similar note withdrawal in 2013–2014.

• what is the value of Rs 2000 notes in circulation currently?

The average lifespan of Rs 2000 banknotes is 4-5 years, and approximately 89% of them were printed before March 2017. By March 31, 2023, only 10.8% of the total value of these banknotes were still in use, down from their peak of Rs 6.73 lakh crore (37.3% of notes in circulation) on March 31, 2018 to Rs 3.62 lakh crore.

• what steps are banks supposed to take now?

The RBI has instructed all banks to stop issuing notes in the denomination of Rs 2000 immediately and to modify ATMs and cash recyclers to reflect this change.
Banks that maintain currency chests (CCs) should make sure that no withdrawals in the amount of Rs 2000 are permitted from the CCs. All CC balances should be flagged as unsuitable and maintained available for delivery to the appropriate RBI offices.

• What is the process to deposit the Rs 2,000 note?

The deposit can be made as usual on the specified dates, without any limits, and “subject to extant instructions and applicable statutory provisions,” according to the RBI.

• What are the key features of the Rs 2,000 note?

The Rs 2,000 note, which is 66 mm by 166 mm in size and is printed in the colour magenta, features a portrait of Mahatma Gandhi and the Ashoka Pillar insignia on the front and a Mangalyaan motif and the Swachh Bharat Abhiyan logo on the reverse.

How Withdrawal Of Rs 2,000 Currency Notes Will Impact Economy, Equity Markets

The Reserve Bank of India (RBI) stated on Friday that the Rs 2,000 banknotes would be taken out of circulation immediately. Banks will begin exchanging the premium currency note on May 23, 2023, up to a ceiling of Rs 20,000.

According to the RBI, over 89% of the Rs 2,000 banknotes were printed before March 2017 and are nearing the end of their anticipated life of 4-5 years.

“The total value of these banknotes in circulation has declined from Rs 3.62 lakh crore constituting only 10.8% of notes in circulation on March 31, 2023, from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3%),” the RBI stated in a release.

The government’s present action coincides with state and general elections that will take place this year and in 2024, respectively.

“The general public may continue to conduct transactions with and accept payment in Rs 2,000 banknotes. But they are urged to deposit and/or exchange these banknotes by September 30, 2023, at the latest, according to the RBI.

Due to the swift digitalization of the country’s payment ecosystem, industry analysts predict that this time the decision won’t have an effect on the economy and markets.

“People, in general, have started using online payment facilities extensively — don’t see a huge issue like what we saw earlier in 2016,” said independent market analyst Ambareesh Baliga.

The decision won’t have an effect on the market or economy, according to WealthMills Securities Equity Strategist Kranthi Bathini, because there is already less money in circulation. The nation also has a very robust digitalization payment system at the same time.

It’s a fantastic approach, according to G. Chokkalingam, founder of Equinomics Research and Advisory. Currently, it deals primarily with banks, with some black money hoarders. People having black money will be cornered since the general population will be reluctant to accept it. In the long run, this action would enhance tax revenues and lower the amount of black money. Consequently, it is a good development for markets.

As was the case with demonetisation, according to Karthik Srinivasan, Senior Vice President of Financial Sector Ratings at ICRA, “we anticipate the deposit accretion of banks could somewhat increase in the near term. This will relieve the pressure on deposit rate increases and may also cause short-term interest rates to moderate.

FAQ – RBI withdrawn Rs 2000 notes