Reserve Bank of India on Friday has decided to withdraw Rs 2,000 bank note from circulation. However, RBI said bank notes of Rs 2,000 denomination will continue to be legal tender.Reserve Bank of India explained the rationale behind the move being "banknotes in other denominations are available in adequate quantities".
RBI has asked banks to stop issuing Rs 2,000 notes with immediate effect. The change has been brught about in pursuance with RBI's “Clean Note Policy”, the central bank said in its communique. Members of the public will be allowed to deposit Rs 2,000 banknotes into their bank accounts and/or exchange them into banknotes of other denominations at any bank branch. However, RBI added that exchange of Rs 2000 banknotes into banknotes of other denominations can be made upto a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.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, the central bank said.The facility to exchange Rs 2,000 banknotes upto the limit of Rs 20,000 at a time will also be provided at the 19 Regional Offices (ROs) of RBI having Issue Departments from May 23, 2023.