In November 2016, the ₹2000 denomination banknote was launched in accordance with Section 24(1) of the RBI Act, 1934, principally to swiftly address the economy’s need for cash following the removal of the legal tender status of the ₹500 and ₹1000 banknotes in use at the time.
The Reserve Bank of India (RBI) has now decided to stop issuing currency with the denomination of ₹2000. But the ₹ 2000 denomination notes will still be accepted as legal money. In its announcement, the RBI stated: “In light of the above and in accordance with the Reserve Bank of India’s “Clean Note Policy,” it has been decided to remove the 2000-rupee denomination banknotes from circulation. The ₹2000 denomination will still be accepted as legal money.
Once banknotes in different denominations were widely accessible, the goal of introducing ₹2000 banknotes was achieved.
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As a result, the production of ₹2000 banknotes was discontinued in 2018–19. A little over 89% of the banknotes in the denomination of ₹2000 were printed before March 2017 and are nearing the end of their 4-5 year expected lifespan. The total value of these banknotes in circulation has decreased from its peak of 6.73 lakh crore as of March 31, 2018 (37.3% of Notes in Circulation) to its lowest point of 3.62 lakh crore as of March 31, 2023, which represents just 10.8% of notes in circulation. Additionally, it has been noted that transactions involving this denomination are uncommon.
Additionally, the supply of banknotes in other denominations is still sufficient to fulfill the public’s demand for cash.
In light of the foregoing and in accordance with the Reserve Bank of India‘s “Clean Note Policy,” it has been decided to stop issuing banknotes with the denomination of ₹2000. The ₹ 2000 denomination bills will still be accepted as legal money.
It should be noted that the RBI removed comparable notes from circulation in 2013–2014.
As a result, customers may deposit ₹2000 bills into their accounts or exchange them for bills of different denominations at any bank location. Deposits into bank accounts can be made normally, that is, without limits and in accordance with current directives and other relevant legal requirements.
Starting on May 23, 2023, any bank will allow the conversion of 2000 rupee notes into notes of other denominations up to a maximum of 20,000 rupees at a time in order to maintain operational ease and prevent disrupting the routine operations of bank branches.
