India to Withdraw Rs 2,000 Notes from Circulation

The Reserve Bank of India (RBI) has announced the withdrawal of Rs 2,000 notes from circulation. The 2,000-rupee notes will remain legal tender until September 30 when people are expected to have deposited of exchanged the notes in their possession.

The announcement was made on Friday and the process of deposit or exchange will begin from May 23, reports Times of India. The report says the RBI has advised all banks to stop issuing the 2,000-rupee notes with immediate effect.

The Rs 2,000 note was introduced in November 2016 to meet the currency requirement of the economy after the withdrawal of legal tender status of Rs 500 and Rs 1,000 notes at the time.

The RBI ceased printing of the Rs 2,000 notes over the past four years in a bid to reduce high value notes in circulation. However, the RBI has noted that the Rs 2,000 “denomination is not commonly used for transactions.”

The decision, according to Times of India is taken in pursuance of RBI’s “Clean Note Policy.” The policy is adopted by RBI to ensure availability of good quality banknotes to the members of the public.

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