The Reserve Bank of India (RBI) has decided to withdraw the Rs 2,000 note from circulation. However, the central bank said in a circular letter on Friday that the notes could still be legal tender. (firework.com)
Through the RBI circular, it was said that in order to complete the implementation in a time-bound manner and to provide time for the public, all banks will provide facilities or exchange of Rs 2,000 banknotes until September 30th, 2023.
The central bank asked citizens to exchange Rs 2,000 notes by September 30, 2023. Apart from that, the central bank also said, the exchange of Rs 2,000 notes into denominated notes can be done up to a limit of Rs 20,000 any time from May 23. For now, the Rs 2,000 note will remain legal tender.
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The RBI said that about 89% of the Rs 2,000 denominated notes were issued before March 2017 and are expected to end their life span in 4-5 years. As of 31 March 2018, the total value of banknotes in circulation has decreased from Rs 6.73 lakh crore to Rs 3.62 lakh crore.
The central bank said that the Rs 2,000 note currently in circulation will remain legal tender in society and can continue to be used for transactions as well as being accepted as payment.
However, this move of withdrawing the Rs 2,000 note will not have an immediate impact on the citizens as they will have sufficient time to exchange it. RBI has encouraged the public to save or exchange these banknotes until 30 September 2023.
Source: India Today
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