Are Rs. 2000 Notes Getting Banned?
Is demonitisation happening again? Will Rs. 2000 notes be banned and become illegal? Read here!
On 19th May 2023, the Reserve Bank of India (RBI) instructed banks to stop issuing Rs. 2,000 denomination banknotes with immediate effect and called out to the public for exchange and deposit of Rs. 2000 notes. They are still legal! Yes, They are just being withdrawn from circulation but will remain legal tender. Meaning you can still use it for transactions. It is not going to be like the 2016 Demonetisation where old 500 and 1000 banknotes couldn't be used as legal tender overnight. Old Rs. 500 and Rs. 1000 notes were banned completely and now it is also illegal to use those.
Okay, so if that’s the case, Then why is this happening? Basically, 2000 notes are just being removed from daily active usage & ATMs will not give out Rs. 2000 notes. The 2,000 denomination banknote was introduced in November 2016 primarily to meet the currency requirement of the economy after the ban of old 500 and 1000 banknotes. So why are these notes being withdrawn from the public?
It is happening under RBI’s clean-note policy. It is a policy adopted by RBI to ensure availability of good quality banknotes to the public. All notes have a lifespan of 4 to 5 years. Now, because the majority of the 2000 notes were issued prior to 2017, they are at the end of their 4-5 year life span. Do you know, the printing of new Rs. 2000 notes was already stopped in 2018-19.
WHAT SHOULD I DO OF MY *2000 NOTES?
You can deposit those in the bank or exchange them for lower denomination notes like in Rs. 10-20-50-100-200-500 notes till 30th September 2023. The deposit can be done any number of times but you can exchange only upto 20,000/- in one go. You have to come back another time for other deposits. But the number of times you come to deposit is not limited.
FROM WHEN & WHERE CAN I DO THAT!
You can do it at any bank or Regional Offices of RBI. This procedure will start from 23rd May 2023.
WILL THERE BE ANY FEE?
No!! The exchange and deposit facility is free of cost.
AND AFTER 30TH SEPTEMBER, WILL THEY BE ILLEGAL?
RBI has not issued any statement about the legality of 2000 banknotes after the deadline yet. The current measures are taken to actively reduce the usage of 2000 notes! Plus, there is a possibility that RBI may also extend the deadline also if it is required.