RBI has decided to withdraw the ₹2000 denomination banknotes from circulation.
The ₹2000 note was introduced in November 2016 to meet the currency requirement
Banks have been advised to stop issuing ₹2000 notes immediately
The ₹2000 notes will continue to remain legal tender, meaning they can still be used for transactions.
The printing of ₹2000 notes was stopped in 2018-19
About 89% of the ₹2000 notes were issued before March 2017 and have reached their estimated lifespan of 4-5 years.
The total value of ₹2000 notes in circulation has declined significantly over the years.
The RBI's decision to withdraw the ₹2000 notes is in line with its "Clean Note Policy," which aims to maintain the quality and circulation of banknotes in the economy.
Starting from May 23, 2023, individuals can exchange ₹2000 notes for banknotes of other denominations up to a limit of ₹20,000 at a time.
The withdrawal of ₹2000 notes is not the first instance of the RBI removing notes from circulation; a similar withdrawal of notes occurred in 2013-2014