Why RBI Withdraws ₹2000 Note From Circulation?

Why RBI withdraws ₹2000 note from circulation

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RBI has decided to withdraw the ₹2000 denomination banknotes from circulation.

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The ₹2000 note was introduced in November 2016 to meet the currency requirement

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Banks have been advised to stop issuing ₹2000 notes immediately

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The ₹2000 notes will continue to remain legal tender, meaning they can still be used for transactions.

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The printing of ₹2000 notes was stopped in 2018-19

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About 89% of the ₹2000 notes were issued before March 2017 and have reached their estimated lifespan of 4-5 years.

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The total value of ₹2000 notes in circulation has declined significantly over the years.

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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.

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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.

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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

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