RBI to withdraw Rs 2000 currency note from circulation but it will be legal tender till September 30

An exchange facility for Rs 2,000 banknotes up to Rs 20,000 at a time would be available from May 23.

Rs 2000 Currency Note. Credit- Getty Images

The Reserve Bank of India on Friday announced the withdrawal of Rs 2,000 currency notes from circulation, and existing notes in circulation can either be deposited in bank accounts or exchanged by September 30.

The banknotes in Rs 2,000 denomination will continue to be a legal tender, the RBI said in a statement.

In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, the RBI said exchange of Rs 2,000 bank notes into banknotes of other denominations can be made up to a limit of Rs 20,000 at a time at any bank starting from May 23, 2023.

The RBI has advised banks to stop issuing Rs 2,000 denomination banknotes with immediate effect.

Besides, the facility for the exchange of Rs 2,000 bank notes up to the limit of Rs 20,000 at a time will be provided at the 19 Regional Offices (ROs) of the RBI having issue departments from May 23.

The Rs 2,000 denomination banknote was introduced in November 2016, primarily to meet the currency requirement of the economy in an expeditious manner after the withdrawal of the legal tender status of all Rs 500 and Rs 1,000 bank notes that were in circulation at that time.