The central financial institution has stated it should withdraw Rs 2,000 notes from circulation and other people can trade or deposit them of their financial institution accounts by September 30. The Reserve Bank of India’s (RBI) 19 regional places of work and different banks will begin taking Rs 2,000 notes for trade with decrease denomination one from May 23. They will stay authorized tender, the RBI stated.
The RBI has instructed all banks to stop issuing Rs 2,000 notes immediately.
The RBI began printing the Rs 2,000 be aware in November 2016 after Prime Minister Narendra Modi scrapped high-value Rs 1,000 and Rs 500 notes in a single day.
“The goal of introducing Rs 2,000 banknotes was met as soon as banknotes in different denominations turned accessible in ample portions. Therefore, printing of Rs 2000 banknotes was stopped in 2018- 19,” the RBI stated in an announcement.
“In order to make sure operational comfort and to keep away from disruption of normal actions of financial institution branches, trade of Rs 2,000 banknotes into banknotes of different denominations might be made as much as a restrict of Rs 20,000 at a time at any financial institution ranging from May 23, 2023,” the RBI stated.
The central financial institution stated folks can deposit or trade for decrease denomination notes until September 30.
“About 89 per cent of the Rs 2,000 denomination banknotes had been issued previous to March 2017 and are on the finish of their estimated lifespan of four-five years. The whole worth of those banknotes in circulation declined from Rs 6.73 lakh crore at its peak as on March 31, 2018 (37.3 per cent of notes in circulation) to Rs 3.62 lakh crore constituting solely 10.8 per cent of notes in circulation on March 31, 2023,” the RBI stated.
The central financial institution stated this be aware is just not generally used for transactions. The RBI had undertaken an analogous withdrawal of notes from circulation in 2013-2014.