The Reserve Bank of India (RBI) has decided to remove the ₹2000 currency note from circulation, effective immediately.
In its statement, the RBI clarified that individuals are allowed to deposit their ₹2000 banknotes into their bank accounts or exchange them for banknotes of different denominations at any bank branch.
The exchange of ₹2000 banknotes for other denominations is limited to ₹20,000 at a time. This exchange service will be available at all banks starting from May 23, 2023.
The RBI has instructed banks to continue offering deposit and/or exchange services for ₹2,000 notes until September 30, 2023. This directive ensures that individuals can still deposit or exchange their ₹2,000 banknotes at bank branches during this period.
Starting from September 30, 2023, the ₹2,000 banknotes will no longer be considered valid legal tender. After this date, these banknotes will not be accepted for transactions or as a form of payment.
Introduced in November 2016 under Section 24(1) of the RBI Act, 1934, the ₹2000 banknote was intended to quickly address the currency demand after the withdrawal of the ₹500 and ₹1000 banknotes from circulation. According to a statement by the RBI, the purpose of introducing the ₹2000 banknotes has been fulfilled as an ample supply of banknotes in other denominations is now available.