What will RBI do with your out-of-use ₹2,000 currency notes?
By Lokmat English Desk | Published: June 9, 2023 06:24 PM2023-06-09T18:24:19+5:302023-06-09T18:24:19+5:30
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India's central bank, as part of its 'Clean Note Policy', declared that ₹2,000 currency notes will no longer be in circulation in the world’s fifth largest economy.
The Reserve Bank of India has declared September 30, 2023, as the deadline to exchange the to-be-scrapped notes. The notes, however, will continue to be legal tender.
As of March 31, 2023, ₹2,000 currency notes constituted 10.8 per cent of notes in circulation.
This translates to about ₹3.62 lakh crore of currency notes. The Reserve Bank of India, while explaining the move, said that the stock of other banknotes in denominations continues to be "adequate" to meet the currency requirement of the public.
For the ₹2,000 currency notes at the end of their lifespan, the Reserve Bank of India will bring back into vogue its remarkable Currency Verification and Processing System (CVPS).
The RBI has rules in place for the disposal of notes unfit for circulation.
The currency notes, after collection from the concerned banks, are deposited at the Issue offices of the Reserve Bank.
After grouping and sorting them under the Currency Verification and Processing System (CVPS), the RBI examines the currency notes to determine their genuineness.
Each CVPS installation is capable of processing up to 60,000 currency notes each hour. CVPS counts the notes and separates genuine ones from fake currency notes. The fake notes are destroyed by shredding. The genuine currency notes which still had quality and life left for circulation before being deemed scrapped, are shredded in a way that they could be recycled into the new currency papers.This means that the paper used to make the ₹2,000 currency note would eventually come back to your pocket in some other denomination.They are shredded and converted into briquettes. Such briquettes are sold for industrial use through a tender invited by the Reserve Bank of India.
