Rs2000 Note Banned & It's confirmed by the RBI

Rs2000 Note Banned?

The Reserve Bank of India has decided to stop issuing bills with a value of Rs 2,000 and has asked that everyone change them by September 30, 2023. The exchange installation for Rs 2,000 bills will be available to individuals starting on May 23, with a limit of Rs 20,000 per sale, according to the RBI. 

Rs2000 Banned

RBI Instructions:

The RBI has instructed banks to stop issuing bills with a value of Rs 2,000 with immediate effect, despite the fact that these notes are still in use. On November 8, 2016, the RBI introduced the Rs. 2000 bill in response to the demonetization of the Rs. 500 and Rs. 1000 notes. It's been around since November 10, 2016, so In November 2018, the preface of the Rs 2,000 denotation bill was authorised under Section 24(1) of the RBI Act, 1934, to instantly address the currency conditions of frugality following the pullout of the legal tender status of all Rs 500 and Rs 1,000 bills in rotation at that time.

 The purpose of issuing Rs 2,000 bills was fulfilled once an acceptable volume of bills in other appellations came available. Accordingly, the printing of Rs. 2,000 bills was discontinued in 2018. Roughly 89 of the Rs 2,000 denotation bills were issued prior to March 2017 and have now reached their estimated lifetime of 4.5 times. 

The total value of these bills in rotation has dropped from Rs6.73 lakh crore as of March 31, 2018(37.3 of the total notes in rotation) to Rs3.62 lakh crore, constituting only 10.8 of the notes in rotation as of March 31, 2023.

Clean Note Policy :

 It has also been observed that this denotation isn't generally used for deals. Likewise, an ample stock of bills in other appellations is available to meet the currency needs of the public. Considering the foregoing factors and in alignment with the Reserve Bank of India's" Clean Note Policy," a decision has been made to withdraw the Rs 2,000 denotation bills from rotation.

 Still, it should be noted that these bills will continue to be legal tender. It's worth mentioning that the RBI had preliminarily accepted an analogous pullout of bills from rotation in 2013–2014. As a result, members of the public can either deposit Rs 2,000 bills into their bank accounts or change them for bills of other appellations at any bank branch. 

Limit of Rs20,000 :

Deposits into bank accounts can be made without any restrictions or subject to any specific terms. To insure functional convenience and help dislocations from regular banking conditioning, the exchange of Rs 2,000 bills for bills of lower appellations can be carried out up to a limit of Rs 20,000 at any bank branch, starting from May 23, 2023. 

May 23 to Sep 30 (2023) :

To insure a timely completion of the process and to allow sufficient time for the public, all banks will offer deposit and/or exchange installations for Rs 2,000 bills until September 30, 2023. Separate guidelines have been handed to banks. The installation for swapping Rs 2,000 bills, up to a limit of Rs 20,000 at a time, will also be available at the 19 regional services( ROs) of the RBI that have issue departments, starting on May 23, 2023. 

With immediate effect, the Reserve Bank of India has instructed banks to discontinue the allocation of Rs 2,000 denotation bills. It's encouraged that members of the public make use of the time until September 30, 2023, to deposit and/or change their Rs. 2,000 bills.